Online Reporter
Business Writer
NicozDiamond Limited, a member of First Mutual Holdings, says local market leadership consolidation remains the group’s key focus that can be used as a springboard for the long-term regional expansion strategy.
Cluster chief executive Mr David Nyabadza, in a statement of financials for the year ended December 31, 2024, said the Group will seek to leverage technology and digital transformation for efficient service delivery to clients of diverse backgrounds.
“Product and service innovation will remain a key focus area for the group as it seeks to develop lasting relationships with its clientele.
“The group will also continue to leverage its superior human resource base, solid balance sheet, strong partnership ecosystem and technology, to drive growth locally and unlock growth opportunities in chosen regional markets,” he said.
He noted that it is positioned to withstand operating environmental challenges emanating from high informalisation, global economic downturn and climate change risks.
In terms of operations review, in Zimbabwe, NicozDiamond Insurance achieved insurance contract revenue (ICR) of ZWG713,3 million, while insurance service expenses reported amounted to ZWG447,6 million, mainly driven by a surge in high-value claim incidences during the reporting period and contract acquisition costs.
Resultantly, the business posted a strong Insurance Service Result (ISR) of ZWG74 million and closed the year with a profit of ZWG33 million.
The Thirty Samora Machel (Private) Limited, a property-owning company, recorded an investment gain of ZiG33,3 million, and the investment gain is in addition to the gain of ZiG32,9 million recorded in NicozDiamond, the company.
In Mozambique, the Diamond Seguros incurred claim ratio for the year at MZN303 million (ZWG79,1 million) grew by 18 percent when compared to 2023.
Mr Nyabadza said the growth was attributed to increased support from brokers due to enhanced trust in the Diamond Seguros brand.
He said claims and expenses were contained within expectations, leading to a decent outturn despite the impact of the cyclones, floods and political violence-related claims.
“Overall, the company reported a profit after tax for the year of MZN7,5 million (ZWG1,96 million), but business activity was affected by the pre-election and post-election protests in the last quarter of 2024,” he said.
Mr Nyabadza said the company had a regulatory capital of ZWG85 million (2023: ZWG79,9 million) as of December 31, 2024, compared to the proposed statutory minimum capital of ZWG38,8 million (2023: ZWG20,3 million), representing 2,2 times cover (2023: 3,9 times cover).
As of December 31, 2024, the company had a solvency ratio of 46 percent compared to 46 percent in 2023, which was above the regulatory minimum solvency requirements stipulated in the Insurance Act.
Mr Nyabadza said the outlook remained positive with expected growth in revenues driven by recovery in key sectors like mining, agriculture and construction.
