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ZIMBABWE’S largest short-term insurer, Nicoz Diamond’s profitability for the year ended December 31, 2015 slid to $1 million from $1.1 million. The group’s total income rose to $27.1 million from $19.2 million in 2014. Gross Premiums Written (GPW) grew 38 percent to $39.6 million in the period under review.

Operating profit for the period amounted to $1.1 million down from $2.3 million prior year. Profit before tax amounted to $916, 733, down from $1.1 million last year. Management attributed it to increased claims, commission expense, operating costs and exchange losses.

“While there was growth of 38 percent in gross premium written, overall profitability declined by 23 percent mostly as a result of increased claims, commission expense, operating costs and exchange losses,” said the company in a statement accompanying the results.

Nicoz Diamond’s investments performance for the year just ended was weighed down by impairments, and unrealised losses on the quoted equities portfolio.

The domestic insurance business contributed 131 percent to profit before share of associate’s profits/losses, followed by UGI at 58 percent, First Insurance Company of Uganda (FICO) at -66 percent and the property companies which contributed -23 percent. The group said although the share of loss of associates improved by 61 percent, their negative performance had a significant impact on the profit after tax.

As at year end, the group had cash resources of $8.4 million, while its consolidated balance sheet grew by 34 percent during the period.

In terms of the regional operations, UGI reported a “modest profit” during the period under review, said management, while FICO, DGI and Diamond Seguros all reported losses.

Basic earnings per share for the period stood at 0,15 US cents. The board did not declare a dividend for the period on the “need to build capital.” —BH24