the year ended 31 December 2009. In a period in which the group attained

a retention ratio of 59%, their GWP totalled $12,1m against premium

ceded of $5m to post NPW of $7,1m. An unearned premium provision of

$1,2m saw the group posting earned premium of $5,9m. Additional

incomes from; brokerage of $1,3m and investment and other revenues of

$343,593 and $50,837 respectively, enabled the group to post a total

revenue of $7,6m. The company then incurred operating expenses of $

6,4m and resultantly achieved operating profits of $1,2m. They made other

income of $1,4m and share of associate profits of $76,851 giving them a

PBT of $2,6m, which got taxed $472,865 to give a PAT of $2,2m. Their

profit for the period ended at $1,8m after deducting a loss on available for

sale financial assets of $124,143 and rights issue costs of $236,534. At the

end of the period the group’s balance sheet stood at $17,7m of which

$10,4m represented the owners’ equity. Coming from a successful rights

issue to raise $4m, the group closed in a positive cash position of $1,9m.

stood at 59%, where the company was adjusting to real USD risk. Claims

ratio as at the end of the period stood at 32% giving rise to claims of $1,9m

while they operated on an expenses ratio of 46%. Nicoz however managed

to post an underwriting profit of $786,119 which translates to an

underwriting margin of 11%.

months to February 2010, while the NPW for the same period was $2,1m

and the earned premium was $1,7m. The underwriting profit for these two

months stood at $546,236. Operation wise, the group is targeting to retain

70% of the business after increasing their underwriting capacity from the

recapitalization exercise. Over the two months the company incurred a

loss on investment of $533,494 mainly due to the ZSE downturn to achieve

a PBT of $12,740. They forecast to make a GWP of +/-$20m for 2010F and

$5m as profit.

months to 28 February 2010 we forecast Nicoz to achieve GPW of $18,7m

(though they forecast $20m) and have net premium earnings of $10,1m. If

they maintain the current claims ratio of 5% and net commission ratio of

9%, and if management expenses remain at, 22% they should achieve an

underwriting profit of $3,3m. We also assume that their listed equity that

has currently taken its toll on the investment income for the first two

months will at worst give no investment income (0% return) and that they

will earn $358,000 from TSM and FICO (as in F2009). This should give a PBT

of $3,6m and earnings of $2,7m. Applying a discounted regional PER of