Africa Insurance reports high profit from share sales

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Africa Insurance Company SC, who recently floated the sales of additional shares, has registered 40 percent earnings per share based on their unaudited record. Africa Insurance, which is considered one of the oldest private insurance firms since the free market was introduced, earned 42 million birr in gross profits during the 2013/14 fiscal year.
In the 2012/13 fiscal year the insurance firm registered 30.7 million birr in profits before tax. The current year’s achievement registered about 35 percent growth compared with the performance last year.
Currently the insurance firm has floated 30,000 ordinary shares for the public.
According to Kiros Jiranie, CEO of African Insurance, the new share sale will end during the coming week.
The share sale is in the bid process and expected to attract more competitors to obtain shares in the financial firm. The profit earned from the financial sector is potentially more profitable compared with other business.
Kiros told Capital that the insurance firm is currently engaged in bid document sales and the competition price will be identified in the coming week.
A year ago the insurance firm decided to increase the subscribed capital from 60 million birr to 180 million birr, which will be fully attained in the current fiscal year.  
The main aim of the current share float is to expand the number of shareholders and to meet the growing capital volume target.
The 20 year old Company firm will be one of the leading private insurance firms in the country with its capital amount.
Two years ago, the National Bank of Ethiopia, the supervisory body for financial institutions, issued a directive increasing the minimum paid up capital required to establish an insurance company to 75 million birr.
Currently all the insurance firms operating in the country are working with their association to establish the first reinsurance firm in the country.