Nicoz Diamond HY profit flat at $1,2 mln

Nicoz Diamond HY profit flat at $1,2 mln

HARARE, August 25 (The Source) – Zimbabwe’s largest short-term insurer, Nicoz Diamond on Friday reported a 4 percent increase in gross premium written to $23,8 million in the six months to June from $22,9 million in the comparable period last year, driven by growth in motor insurance business.

After tax profit was largely flat at $1,2 million while operating profit decreased by 17 percent to $1,55 million from $1,87 million last year, weighed down by the Malawi operation, United General Insurance (UGI).

“The reduction was 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 spares,” said group chair, James Karidza.

Total costs increased to $12,2 million from $11,3 million in the same period last year.

Nicoz’s Zimbabwe operation saw a 7,4 percent growth in GPW contributing 78 percent to the group’s premiums.

Income from properties and other investments contributed $1,2 million to operating profit, a 77,7 percent growth from previous year.
Cash generated from operating activities improved by 191 percent to $845,729 on stringent management of operating expenses.

Total assets increased from $41,2 million last year to $46,1 million.
The group did not declare an interim dividend.