Zimbabwe’s largest short-term insurer NicozDiamond posted an after tax profit of $2.44 million in 2017 compared to $1.75 million in 2016 largely driven by modest growth across the group and a rebound by its Malawi unit.
Chairman James Karidza said United General Insurance (UGI) Malawi recovered from its worst performance in 2016 on the back of an improved economy and turnaround strategies with total comprehensive income for the year amounting to $2.97 million, an increase from $52 507 last year.
Group cash generated from operations increased 163 percent on the prior year to $2.37 million as a result of improved premium collections.
Karidza said gross premium written increased 9 percent to $40.19 million from $36.99 million last year as both company and UGI Malawi achieved modest growth during the year. Claims dropped by six percent.
Operating expenses increased 13 percent to $25.28 million from $24.28 million fueled by the rising inflation, especially in Zimbabwe while the Malawi unit incurred restructuring costs which are expected to result in cost efficiencies in future.
Group investment income grew 75 percent largely as a result of good returns from the equities and fixed income securities which improved significantly last year.
Karidza said the group was capitalised at $14.7 million, above the minimum statutory requirement of $2.5 million for short term insurers.
UGI Malawi was however still below the minimum required solvency in the market, and in need of recapitalisation. –The Source
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