African Insurance Company, one of the oldest insurers in the country, concludes its financial year with net profit growth; despite its total income showing slight reduction.
The annual report of the company which was formed in 1994 indicated that in the 2020/21 financial year it has amassed almost 51 million birr in net profit after tax with the increment of over five million birr compared with the preceding year.
A year ago the company earned 45.7 million birr which has now increased by almost 11.5 percent to stand at 51 million birr.
The total comprehensive income for the year stood at 51.9 million birr up from the 50.4 million birr in the 2019/20 financial year.
According to the annual report, the company’s gross profit before tax for the reported year stood at 59.4 million birr showing increase from 58 million birr, a year ago.
As of June 30, 2021, the insurance company, which is one of the strongest insurers, saw its total asset reaching 1.44 billion birr. The company which has two high rise buildings in the capital city at South Africa Avenue of Bisrate Gabriel and Africa Avenue, Japan Bole (HQ), is one of the biggest firms in terms of asset.
The report of Africa Insurance indicated that at the end of the financial year the company’s paid up capital has expanded by 24 percent to reach 224 million birr up from 180 million birr a year ago, while its total capital and reserves stood at 366 million birr.
According to the annual report the company’s total income stood at 581 million birr showing decrease from 604 million birr in the 2019/20 financial year. Similarly for the year the net claims incurred in the 2020/21 financial year has reduced by almost 13.5 percent.
Gross claims amounting to 380.5 million birr was paid during the financial year with respect to the general insurance business and 8.9 million birr for life insurance beneficiaries.
According to the annual report, the net claims paid in the 2020/21 fiscal year, show that it is 10 percent lower than the preceding year for general insurance business, and the life business payment has also dropped by 18 percent.
During the financial year, the gross written premium income stood at 602.4 million birr from both life and general insurance businesses, while the general insurance share was 584 million birr.
The annual report indicated that the total premium generated was higher than last year’s same period by almost 29 million birr or 5 percent.
In total the company expenses stood at the 513 million birr with almost six percent reduction compared with the preceding year of 544 million birr.
The reduction on net claim incurred and the total expense in general shall support the company to register profit growth though the net earned premium and investment and other incomes reduced.
For the year, the net earned premium has stood at 445 million birr with 5.9 percent reduction compared with 471 million birr of a year ago.
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