Lion Insurance Company (LIC) surpasses a billion birr in assets in the recently concluded financial year.
The insurance company during its general assembly stated that its asset surged by 35 percent to reach 1.3 billion birr in the 2021/22 financial year from 978 million birr a year ago.
Similarly, its liability has increased by 42 percent peaking at 989 million birr.
According to the annual report of LIC, the insurance firm’s paid up capital has now capped at 195 million birr from 166 million birr at the end of the 2020/21 financial year whilst the subscribed capital stood at 300 million birr.
The gross written premium of the bank has shown an increment of 69 million birr or 17.4 percent and is now at 464 million birr. Based on its performance, LIC’s gross written premium market share now stands at over 3 percent as of June 2022.
As the norm, the motor class of business production portfolio took the lion’s share to stand at 53 percent followed by pecuniary and liability at 11 percent and 8.6 percent respectively.
According to the annual report of LIC, from the total gross written premium, the company retained 345 million birr and ceded a balance of 119 million birr to reinsurance, “the company retention rate stands at 74 percent.”
In the financial year, gross claims of 165.6 million birr have been settled exhibiting a decrease of 4.6 percent, which is uncommon in the sector.
Similarly, the net claims incurred shrank by 13 percent compared to the preceding year to stand at 162.1 million birr, while the company claim ration stood at 53 percent; which was 61 percent in the year that ended on June 30, 2021.
As a result, the underwriting result attained a surplus of 145.2 million birr with 22 percent increment compared to 119 million birr from a year back.
Regarding other incomes, the insurance firm has secured a total of 74.2 million birr, which is 17 percent higher than the preceding year, that is, non operational income like investment and fixed time deposit.
In the year under review, the firm’s gross profit has increased by 8.1 percent reaching almost 64 million birr.
Profit after tax during the reporting period now stands at 61.3 million birr up from 57 million birr, from the previous fiscal year.
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