HARARE - Listed short-term insurer NicozDiamond Insurance Limited (NicozDiamond)’s Mozambique unit weighed down the company’s profits in the half year to June.
Albert Nduna, the group chairperson said Diamond Seguros had not performed well for the period under review.
“A significant portion of the loss came from Diamond Seguros Mozambique, in line with expectations, as the entity’s performance is still weighed down by start-up costs,” Nduna said.
However, the group posted an operating profit of $1,8 million for the period under review.
“This was a 60 percent increase from June 2013. Gross premiums declined by one percent compared to prior period,” said Nduna.
Profit after tax for the group amounted to $1,2 million, inclusive of share losses from the group’s associates amounting to $282 967.
According to the NicozDiamond boss, the decline in gross premiums was a result of short period policies being raised as opposed to annual premiums.
“Resultantly, a significant portion of premium was earned at June 2014 compared to prior year,” said Nduna.
Profits from insurance underwriting amounted to $1,1 million, a growth of 67 percent from prior year driven by good loss ratios and controlled operating expenses.
The Zimbabwean entity contributed all of the underwriting profits whilst First Insurance Company (Fico) reported a marginal loss.
“The recapitalisation of Fico is at an advanced stage and will be complete by end of the third quarter of the current financial year,” he said.
NicozDiamond, which has significant interests in insurance and property locally — already, holds risk management and technical services agreements in Malawi, Zambia, Angola and Uganda.