Home » Industry » Nicoz Diamond Records Six Percent Growth

In spite of the slowdown in economic activity, Nicoz Diamond recorded a 6 percent growth in the top-line in the four months to April. Managing director Mrs Grace Muradzikwa told the AGM this afternoon that demand in the insurance sector had slackened, mirroring the liquidity challenges in the economy. “In insurance we follow the fortunes of our clients and hence always feel the wrath of the challenges on the ground,” said Mrs Muradzikwa.

However, in spite of this the group had recorded growth although it was a drop from the double digit growth the group used to enjoy in the past few years.”

Gross Premium Written was $11,1 million from $10,4 million last year. Mrs Muradzikwa said this was in line with budget.

Mrs Muradzikwa said the group now had more policies on its books compared to prior year though the level of covers taken up by clients had generally reduced.

Mrs Muradzikwa said the loss ratio was at 42 percent from 47 percent last year.

“The measures we have taken around risk management at our clients as well as the supplier engagements to manage cost of claims are paying off.”

She added, however, that there was still a lot to be done to manage costs of motor vehicle repairs which appear to be increasing despite the fact that the general price level is decreasing.

Mrs Muradzikwa said the group continues to make good progress in correcting expense ratios from a high of 46 percent to earned premiums in April 2010 to 36 percent currently.

“This is against a target of 35 percent.”

Investment performance was under pressure from softening interest rates to depressed stock market performance.

The Diamond Villas property project was going on well and by the end of July the first lot will be ready for sale.

Mrs Muradzikwa said the regional investments were doing “fairly well” with the exception of FICO Uganda which still requires capital.

Diamond Seguros Mozambique started trading in March and has so far met its revenue targets.

Overall, she said the profitability of the company is in line with forecasts and above last year.

The challenge is to ensure that all these premiums not yet collected are collected in full.

At the AGM, directors fees for last year were approved $74 605 and auditors fees of $68 250.

Source : The Herald