UGI comeback bolsters Nicoz

HARARE - A dramatic recovery of Zimbabwe Stock Exchange-listed Nicoz Diamond Insurance Limited’s troubled Malawi operation during the year ended December 2017 boosted its gross premium written to $40,1m from $36,9m the previous year, chairperson, James Karidza said yesterday.

Nicoz saw its pre-tax profits rise three fold to $4 million during the review period, from $1,3 million the previous year.

It rode over continuing threats of an incessant foreign currency crisis in Zimbabwe, where most businesses have failed.

“The group registered an encouraging financial performance during the year on the back of… recovery in the performance of United General Insurance (UGI) Malawi. The performance of UGI Malawi, which recorded its worst performance to date in 2016, rebounded significantly in 2017 on the back of an improving economic environment and turnaround strategies implemented,” Karidza said.

“The group made an overall total comprehensive income of $2,9 million which was a significant surge from the $52 507 achieved in 2016. This was largely buoyed by the good performance from the company, which posted a profit after tax of $2,4 million, a significant improvement from the $1,7 of 2016.

Gross premium written increased by nine percent as both company and UGI Malawi recorded modest revenue growth during the year,” said Karidza.

He said Nicoz’s significantly improved operations helped weather the economic storm in Zimbabwe, where the foreign currency crisis that started about three years ago deepened.

In a key development, Nicoz failed to follow its rights in a transaction involving its Zambian operation, where a decision would later be reached to exit that market.

“During the year the board made a decision to exit from the investment in Zambia based on the operation’s performance and the limited foreign currency to allow the group to follow its rights for recapitalisation,” said the Nicoz chairperson.

He said the company had started the process of merging Tristar Insurance and Nicoz, in the aftermath of an 81 percent acquisition of Nicoz by First Mutual Holdings Limited last year.

– The Financial Gazette

Post a comment

Readers are kindly requested to refrain from using abusive, vulgar, racist, tribalistic, sexist, discriminatory and hurtful language when posting their comments on the Daily News website.
Those who transgress this civilised etiquette will be barred from contributing to our online discussions.
- Editor

Your email address will not be shared.