Zimbabwe’s largest short-term insurer, NicozDiamond’s Gross Premiums Written grew 11 percent to $19.5 million in the five months to May 2017.
Revenue for the first four months to April marginally grew by a percent, managing director Grace Muradzikwa told shareholders at the company’s annual general meeting.
“The insurance industry continues to face a protracted soft market cycle that has seen clients continuing to negotiate for reduced covers and lower premium rates. This is further exacerbated by the extended payment terms being negotiated,” she said.
The company paid claims worth $2.7 million in the five month period.
“Even though some regulatory and related changes made in 2016 increased the cost of doing business for the sector and the company in particular, we did all we could to ensure that expenses remain aligned to revenue and this shall continue to be an area of focus,” said Muradzikwa.
The company’s housing project, Diamond Villas, will be fully leased out in July and so far positive rental yields are being obtained, she added.
Muradzikwa said that the Zambian and Malawian businesses traded positively but the Mozambique was in a loss-making position.
Going forward, the company will focus on customer retention and growth, claims cost management and expenses reduction.-The Source