HARARE - NicozDiamond Insurance Limited (Nicoz) last year made an underwriting loss of US$980 000 resulting in its directors trying their luck on investing on the lacklustre Zimbabwe Stock Exchange (ZSE).
The ZSE has, however, not been performing well ever since the introduction of a dual currency in Zimbabwe after the dumping of the worthless Zimbabwe Bearer Cheque as legal tender. Zimbabwe now uses the United States greenback and the South African Rand for its business operations. Nicoz Chairperson, Dr Mavis Chidzonga, told shareholders that for the period ending December 31, 2011, her company ha made an underwriting loss of US$985 198.
The Group’s Gross Premium Written at US$18,6 million was a growth of 54 per cent on the prior year. Retention stood at 66 per cent resulting in a net Premium of US$10,5 million. “There is still room to improve on the retention in comparison to benchmarks,” Chidzonga said. NicozDiamond is currently led by Grace Muradzikwa, among the only female Chief Executices on the ZSE today.
“The Group is investing in property, unquoted equities, money market and in counters quoted on the ZSE,” Chidzonga told shareholders. “All investment classes with the exception of the ZSE listed investments performed well and posted positive returns. The Group made unrealised losses on the ZSE listed investments during the period under review and with the offset of income from the other asset classes, closed the period with a marginal investment gain of US$14 113.”
Chidzonga said that after taking into account retrenchment costs and exchange rate differences from the Ugandan subsidiary, NicozDiamond made a loss before tax of US$842 754 for the year 2010. The insurance giant has a market capitalisation of US$7 552 577 on the ZSE. Its share price currently stands atUS$1.35. Last week 3 935 shares changed hands at NicozDiamond.
Post published in: Economy