adminHARARE — Insurance firm, Nicoz Diamond says it expects sales of its cluster housing units, Diamond Villas, to pick up in view of the growth in the long-term mortgage facilities on the local market.
The group anticipates that improved sales of the housing cluster will help negate the effects of generally low returns on its investment portfolio due to a difficult macro-economic environment.
Phase 1 of the project has so far been completed. On the whole, the project will consist of 58 housing units comprising three bedrooms, which can be acquired through cash or mortgages.
Giving a trading update at the company’s annual general meeting on Friday Nicoz Diamond managing director Mrs Grace Muradzikwa said although there was slow uptake of the units presently, the group was optimistic of an upturn going forward.
“Investment performance is under pressure from softening interest rates and depressed performance on the stock market. To cushion effects of these investment classes, the Diamond Villas first phase of 20 units was completed and the units are now selling.
“The sales started slow but we are optimistic that with the 15-year and 20-year mortgage facilities now available to support the buyers of the units, the sales will pick up,” she said.
The group’s regional investments have however, performed “fairly well” said Mrs Muradzikwa.
“Our regional investments have also started the year fairly well though we keep struggling with competitive capital in the various markets. Diamond Seguros of Mozambique started trading in March 2014 and met its revenue target of $2,3 million in the nine months of trading.
“As at May 22 they had written $1 million worth of business which shows that the unit has been well accepted by the market and the focus is to ensure that the entity becomes profitable,” she said.
In the first quarter of 2015, the insurance firm has managed to maintain premium levels from the prior year, despite a challenging environment.
According to the MD, Nicoz Diamond achieved Gross Written Premium (GPW) of $11,16 million at the 30 April 2015, which was slightly above the $11,12 million achieved during the prior comparable period.
She however, lamented an increase in claims by almost 8 percent, compared to the similar period in 2014. — BH24
Londile Moyo
Online Reporter