NicozDiamond GWP up 44pct in two months, associates seen improving

NicozDiamond GWP up 44pct in two months, associates seen improving

HARARE, March 17 (The Source) – Short-term insurer Nicoz Diamond says gross written premiums (GPWs) rose by 44 percent in the first two months to February and is optimistic that associate companies, which dragged the company’s performance in 2014, will become profitable this year.

Last week, the company reported that its net profit for the full-year to December fell by over 50 percent to $1,1 million on declining GWPs and losses by associates, UGI in Uganda and FICO of Malawi.

“So far we have managed to record gross premium writings of $10 million between January and February which is a good start because during the same period last year gross premium writings amounted to $7, 150 million,” said NicozDiamond corporate services general manager, Gloria Zaravanhu in a trading update.

“So now that all the costs associated with startups (associate companies) have been absorbed, we are looking forward to a positive performance this year.”

In the full year to December 2014, GWPs fell to $28, 7 million from $30 million.

The domestic insurance business contributed 88 percent to last year’s profit with the properties portfolio contributing 11 percent.

Losses by associates reduced the profit by 28 percent.