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Gross premium written grew five percent from US$23,5 million to US$24,7 million a year earlier.
Operating margins improved by 119 basic points due to the reduction of net claims and acquisition from US$8,9 million to US$8,2 million.
Other operating expenses rose from US$5,2 million to US$5,8 million. Investments income rose 49,8 percent to US$1,97 million with the property portfolio contributing the bulk of the return.
Associate companies contributed US$400 000 to group profits, an increase of 37 percent on previous year. Nicoz associate companies are Clover Leaf Panel Beaters and Fidelity Life Assurance. It also operates FICO in Uganda, UGI in Malawi and Diamond Insurance in Zambia.
The company declared a dividend of US$0,00064 per share with a yield of 4,9 percent.
Nicoz generated positive cash from operations of US$900 000 from a negative position a year before. This is partly due to the decline in insurance receivable on the balance sheet which decreased from US$6,8 million to US$6,3 million.
The cash surplus was spent in new investment and dividend payments. Cash flow from investing doubled after disposals of quoted equity investments and reduced short-term money market investments from US$2,2 million to US$1 million.
The funds were utilised towards the purchase of investment properties that increased from US$6,7 million to US$8 million and the purchase of short-term money market investments which increased from US$1 million to US$3 million.
Current assets rose seven percent to US$13,8 million with significant reduction in short- term investments and insurance receivables. The collection rate for Nicoz Diamond at 75 percent of gross premium written is much better compared with peers in the sector, with average collection rates of 60 percent.
Unlike other insurance peers, insurance receivable on the balance sheet declined which shows that management is taking precautionary measures in underwriting risk.
The company’s chairman Mr Albert Nduna said, going forward, he was optimistic about the continued recovery of the economy and “inherent” opportunities for the insurance industry in the future.
In Uganda, plans to recapitalise FICO are at an advanced stage and the investment will make the company more competitive than before. The company will also be strategically positioned to acquire significant business.
The investments made in the refurbishment of the property portfolio in Zimbabwe are also expected to result in better returns.
The short-term insurance sector is the most competitive sub-sector in the insurance industry and Nicoz is one of the leading short-term insurers in this space.
Online Reporter