HARARE, July 7 (The Source) – Zimbabwe’s largest short-term insurer NicozDiamond’s Gross Premiums Written (GPW) in the five months to May 2016 were steady at $13 million, the company said on Thursday.
Retentions stood at 71 percent compared to 62 percent in the prior year, although they had since started regressing.
“The retentions have since come down to the expected range of 60-65 percent…the company aims to improve on these retentions so as to boost its profitability. Underwriting capacity enhancement is required and the company is looking at further options to further strengthen the balance sheet,” managing director Grace Muradzikwa told shareholders at the company’s annual general meeting.
In the period, the company had processed claims amounting to $4 million, two of them valued at $500,000 each, she said.
Muradzikwa told the shareholders that the company plans to dispose of its Uganda unit, First Insurance Company (FICO).
She later told The Source that FICO, which it acquired from parent company Zimre Holdings, was a difficult investment with low returns.
“The returns from that market were not what we expected. Sometimes it is better to cut your losses. We are still exploring ways of exiting. We would rather dedicate our resources where there would be better returns,” said Muradzikwa.
The completed phase of Diamond Villas cluster houses has contributed positive rental yields, she added.