Muradzikwa said the financial performance of the company in the period indicated an upward momemtum of the good performance laid in 2011. She said: “Notwithstanding the tougher trading conditions, the company managed to grow its business.”
Revenue in the period was up 26,4% to US$8,1 million. This was an increase from the US$6,4 million posted last year. Net claims incurred were down almost 50% because the group had adopted a stringent claims management practice as well as continued adherence to strict underwriting standards.
Muradzikwa said all major classes of underwriting profits, including motor vehicles, were in line with the company’s target. Although insurance rates were beginning to firm in line with regional markets, she said price-based competition continues to exert pressure on underwriting margins across all business classes.
Muradzikwa also said the Ugandan market remained stable and FICO’s performance showed good signs of recovery during the period. In last year’s financial results, NicozDiamond posted a profit before tax of US$1,6 million, which was a recovery from a loss position of US$800 000 recorded in 2010. All units, NicozDiamond and FICO registered improvements in performance compared to the prior year.
The insurance industry in Zimbabwe last year witnessed a significant increase in claims, particularly for motor insurance. According to the Insurance and Pensions Commission’s short-term insurance report for the fourth quarter, total gross premium written (GPW) increased by 35,51% to US$158,97 million. The growth in GPW was driven by the premiums generated from motor and fire insurance, which were at US$33,41 million and US$15,08 million respectively.
The insurance industry has been on a recovery path because of the stability of the macro-economic environment since the inception of the multi-currency regime.
There has been an increase also in the motor vehicles that are on Zimbabwe’s roads. In 2011, the country spent US$1,365 billion on the importation of motor vehicles.
— Staff Writer.