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Zimbabwe: Nicoz Posts $22,44 Trillion Profit
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 Published by the government of Zimbabwe |
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The Herald (Harare)
26 March 2008
Posted to the web 26 March 2008
Harare
NICOZ-DIAMOND performance for the two months to February is double what the short-term insurer earned in the year to December 31.
Managing director Mrs Grace Muradzikwa said that attributable profit was $22,44 trillion against the 2007 full year figure of $10,45 trillion.
Investment income totalled $30,57 trillion but Mrs Muradzikwa said the bulk of the income was in equities, which as of last week were valued at $58 trillion.
Gross premium written (GPW) was $19,02 trillion versus $3,3 trillion for the full year. Net premium written (NPW) amounted to $8,94 trillion against $1,44 trillion.
Expenses were $2,085 trillion in the two months against $483,4 billion for the whole of last year.
Mrs Muradzikwa said, "expenses were growing faster as it was difficult to contain employee expenses". Staff costs made up 55 percent of total costs.
Claims had grown to $2,77trillion compared with $438,3 billion while the underwriting profit was $60,33 billion against the full year amount of $53,54 billion.
In the year to December, GPW rose 103 274 percent at $7,9 trillion. Operations general manager Mr Noel Manika said of that amount $4,603 trillion came from Fico Uganda.
Motor contributed 56,4 percent of premiums but 88,5 percent of claims, while fire was 18,74 percent of premiums and only 2,22 percent of claims.
Mr Manika, however, noted that the underwriting loss of $1,21 trillion after claims of $1,6 trillion were as a result losses at Fico.
In the year, investment income was $26,8 trillion, with $14,87 trillion coming from NicozDiamond Company; $436,6 billion from Fico and $11,5 trillion from the revaluation of building 30 Samora Machel Ave.
The retention ratio had fallen to 44 percent from 60 percent, which Mr Manika noted was below the market average of 53 percent. The increase in operating expenses/NPW to 34 percent from 22 percent remained a "major concern", Mr Manika said.
Claims incurred to earned premium rose to 40 percent from 35 percent, but were still below the market average of 42 percent.
Corporate services general manager Ms Racquel Lindsay said that investment income in the year had outperformed in US dollars.
Of the investment income mix equities made up 65 percent, unquoted 6 percent "as the group had changed its valuations from the blended rate to just net valuation" and properties at 29 percent.
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The portfolio mix was just the same as the investment mix "mirroring the income from investments".
Ms Lindsay said that the equities were mixed but had blue chips as a hedge. Investments in unquoted equities is expected to increase in the current year.
On the outlook, Mrs Muradzikwa said the group would focus on product relevance as a way of controlling costs and would enforce strict cash collection measures.
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