African Ins. to increase capital two fold

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The general assembly of Africa Insurance Company SC, one of the oldest private insurance firms in the country,

has decided to raise its subscribed capital two folds from the current 60 million birr paid up capital.
The insurance company that is one of the leading private insurance firms by its asset and premium, announced that it has earned 27 million birr profit before tax, which shows an 18 percent growth compared to the previous fiscal year performance. The net profit of the insurance firm after tax in the past fiscal year represents 23.6 million birr and growth of 4.6 million birr compared with the 2010/11 fiscal year.
Africa Insurance registered 357 million birr gross written premium, of which 344 million birr is from general insurance premium and 13 million birr from long term insurance business in the 2011/12 fiscal year. It has recorded 39 percent growth compared to the 2010/11 fiscal year performance, which stood at 257 million birr.
On the general assembly of the insurance firm held Saturday December 15 at Hilton Hotel, shareholders agreed to raise the subscribed capital to 180 million birr from the current 60 million birr paid up capital.
A dividend of 12.6 million birr was paid during the 2011/12 fiscal year based on the profit registered. During the period, general insurance gross written premium of the company has registered a growth of 40 percent which increased to 344 million birr compared to last year’s production of 245 million birr. Out of the gross written premium of 344 million birr, 213 million birr was from the motor class business.
The increase in gross premium has mainly resulted from business written on third party compulsory motor insurance, which is 36 million birr or 11 percent of the total performance.
The insurance firm has paid a total of 189 million birr claims for losses incurred where 145 million birr or 77 percent goes to the motor class business.
The total investment of the company as at June 30, 2012 is 128 million birr. A total of 85 million birr of the portfolio is held with various banks in saving accounts and fixed time deposit while the remaining 43 million birr is invested as ordinary shares in Wegagen Bank and Selam Bus Line SC. The company secured 6 million birr interest from deposits held at various banks. There was also a revenue of 12 million birr earned from shares at Wegagen Bank.
The total asset of the company grew by 17 percent from 430 million birr to 502 million birr, while current liability increased by 16 percent from 354 million birr to 410 million birr.
The net asset of the company is one of the highest amount in the insurance business in the country.
Currently, the company has finalized the construction of the building located around Bisrate Gabriel. Kiros Jiranie, CEO of African Insurance told Capital that the firm will invite contractors within two months to select a company to commence the construction of the Bole Main branch office located on Africa Avenue (Bole Road).