NicozDiamond restructures investment portfolio

unlocking value in its property holdings.
Group managing director Mrs Grace Muradzikwa told an analyst briefing in the capital last week that the group will now actively participate in unquoted equities.
“We have some land in Harare and Bulawayo and we are going to work with property developers to develop the project and unlock the value.
“As for the quoted equities, we are going to exit some counters, which are not performing well but it would be at the right time,” she said.
NicozDiamond has several investments in blue chip and second-tier counters.
In the first six months ended June 30, 2011 properties contributed 50 percent of the group earnings from investments, with the money market contributing 35 percent.
Quoted equities contributed 13 percent and non- quoted equities contributed just about 2 percent.
Equities have been trading southwards following negative perceptions of the indigenisation regulations. Most companies are still struggling to recapitalise resulting in their share prices trading in the negative territory.
During the period under review NicozDiamond’s gross premium written increased to US$11,7 million from US$8,3 million recorded during the same period last year.
Net premium written stood at US$7,9 for the period as claims were at US$3,4 million representing a 184 percent increase to the comparable period.
Underwriting profit for the group was US$493 000 and investment income was just US$277 000.
Profit after tax was US$439 000 for the period.
Commenting on the results, Mrs Muradzikwa said the performance showed real growth for the company.
She said they were under pressure from the shareholders to declare a dividend and strategies were under- way to increase profits for the company.
She added that they will not hesitate to dispose of their regional subsidiary, First Insurance Company in Uganda, if they continue making losses.
During the period under review, FICO gross premium written stood at US$1,2 million.
NicozDiamond says they will continue to capacitate local operations and also increase their footprint in the region.
Without going into detail, Mrs Muradzikwa said before the end the year, they would have opened two new markets in the region.
Mrs Muradzikwa said the insurance industry is tracking economic growth despite the slow take-up of the manufacturing sector that has been hit by liquidity and skills problems.
The majority of insurance customers are in the manufacturing sector and are currently tapping into the agriculture and mining sectors as asset classes.
According to NicozDiamond, the sector has grown from about 2 percent to 4 percent during the past 12 months.
Opportunities in the sector are still in short-term insurance and emerging mortgage financing.
Mrs Muradzikwa said there seems to be an increase in insurance take-up in the country and insurance rates are on the upside.
However, the insurance industry remains overtraded with 28 players. The sector is flooded because of the meagre minimum capital requirements of US$300 000.
In the outlook, Mrs Muradzikwa said her company is expected to write more business during the fourth quarter of the year thanks to the October motor renewals.
Motor insurance is the biggest contributor to NicozDiamond’s balance sheet, contributing 49 percent followed by fire at 21 percent.
Accidents and marine contribute 16,5 percent and 6,3 percent respectively.
NicozDiamond sits on 16 percent of the market share and it can write business up to US$12 million.