NicozDiamond Insurance gross written premium up 4% in H1 2017
Insurance24 Reporter
HARARE, NicozDiamond Insurance Limited Gross Premium Written (GWP) increased 4.13% to $23.8 mln during the half year period ended 20 June 2017 compared to $22.9 mln same period in 2016 with the Zimbabwean unit contributing bulk of it at 78%.
According to Chairman James Karidza, NicozDiamond Zim grew 7.4% compared to June 2016 which is above the estimated market growth.
During the period, group operating profit was 17% lower at $1.55 mln compared to $1.86 mln in June 2016 mainly as a result of retrenchment costs incurred in Malawi to align future expenses to income.
“There was also an increase in claims costs in Malawi due to the impact of price adjustments on imported motor spare parts,” he said.
Profits from insurance underwriting, included in operating profit amounted to $1.16mln declining from $1.34 mln during prior year same period.
NicozDiamond underwriting profit increased 46.6% due to the increase in gross premium written and controlled operating costs. On other hand, the Malawian operations underwriting position is expected to improve in future given the measures taken to address claims and operating expenses.
Income from properties and other investments contributed $1.20 mln to operating profit which was a 77.7% growth to prior year.
Consequently, after tax profit for the interim period marginally declined 0.47% to $1.204 mln from $1.209 mln same period last year.
Meanwhile, Karidza said the company has robust strategies in place to safeguard the profitability of the company.
In Malawi, the company stands ready to exploit the market while competitive capital attraction is underway at Diamond Seguro Mozambique and DGI in Zambia.
