IN a shrinking economy like Zimbabweâ€™s it is not often that one finds a company that can achieve real growth like what NicozDiamond has done.
The insurance company join the bandwagon of companies lamenting the unstable economic environment but recording increased revenue and real growth.
The company said the agility and ability to read the environment and adopt suitable strategies is what made a difference among its competitors. The group achieved a profit after tax of $201,4 quadrillion for the interim period ending June 30 from $66,3 quadrillion achieved during the same period last year.
“Notwithstanding the adverse trading environment, the group registered revenue growth of 3,6 million percent which is however lagging behind the growth in claimed and operating expenses,” said NicozDiamond chairperson Mavis Chidzonga.
She said the high expense ratio currently prevailing for First Insurance company negatively impacted on the groupâ€™s underwriting profit.
There has been incessant erosion of real capital and consequently primary insurers and local reinsurance institutions retain less premium on the insurance sector.
Revenues have been propped up by unrealised investment gains derived from revaluation of equity and property asset but high operating expenses, high debtorsâ€™ ratio and negative interest rates continue to exert pressure on cash flows
“Underpinning the groupâ€™s performance was investment income, which rose by 35,2 million percent,” said Chidzonga.
By Paul Nyakazeya