Though the insurance industry faced many challenges including under-insurance because of the hyperinflationary environment, NicozDiamond still managed to post a net profit of $10.2 billion last year, a drastic improvement from the $1.1 billion it made in 2002.
Net premiums improved from $5.7 billion to $31.8 billion. Though claims and other expenses sucked $28 billion leaving an underwriting profit of only $3.8 billion, this was boosted by investment income of $8.8 billion.
Underwriting profit for 2002 was only $423.1 million and investment income $1 billion.
The company says other challenges it faced last year were escalating costs due to a shortage of foreign currency and the depreciation of the Zimbabwe dollar as well as increased competition from new entrants.
It says this had an impact on both staff mobility and business growth.
Though it says it is difficult to forecast prospects for 2004 because of central bank Gideon Gono’s new monetary policy, this should go a long way in bringing the economy back on its feet.
The company also says it will be rated by the Global Credit Rating Company from this year.