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Business Editor
Leading short-term insurer company Nicoz Diamond posted a $2,3 million profit in the year ended December 31, as a result of the insurance underwriting profit that spiked by 695 percent.
Underwriting profit surged to $857,139 from $107,798 from the prior year.
In a statement accompanying the group’s financial results, NicozDiamond chairman Albert Nduna said going forward the company was targeting the less developed members of the community to grow its revenues through offering micro-insurance solutions.
The bulk of the group’s profitability came through property companies that contributed 51 percent followed by domestic insurance at 43 percent while its subsidiary in Uganda — FICO — weighed in with 6 percent.
Gross premium written rose to just above $30 million from $24,7 million despite challenges in the collectability of premiums in the absence of insurance premium financing.
“While the growth prospects for the economy and in the insurance sector remain subdued, the company continues to seek for opportunities in growth sectors by customising and improving its product and service offering,” said Nduna.
“Some of its new initiatives include coming up with micro-insurance solutions which ensures that the less developed communities enjoy affordable insurance protection.
“In Uganda, plans to recapitalise FICO are at an advanced stage with part of the capital having been raised at the end of 2013.”
He said the company had maintained its equity investments in FICO and Diamond Insurance of Zambia adding that a management and technical service contract with United General Insurance in Malawi also remained in place as the entity remained profitable.
As part of its expansion strategy, Nduna said the group last month launched Diamond Seguros in Mozambique whose prospects look bright.
In order to unlock value in its property unit the group intends to sale both houses and serviced stands.
According to Nduna the Hatfiled cluster home that is already underway has already attracted significant interests from potential buyers.
Online Reporter