Africa Insurance Company, one of the strongest private insurance firms in the country, has registered its highest profit in the past financial year. The insurance firm, established 21 years ago, has also registered one of the biggest premiums in the market for the 2014/15 fiscal year.
Africa Insurance has taken 7.2 percent of the market share for the fiscal year, making it the leading actor in the sector. The firm’s annual report indicated that its premiums climbed to 351 million birr, a 4 percent growth compared with the 2013/14 fiscal year.
Gross written premium stood at over 327 million birr for the company’s general insurance, also showing a four percent annual growth. As usual, 64 percent of insurance is attributed to motor insurance.
Africa Insurance’s performance report stated that in the past fiscal year, the insurance firm has earned 43.9 million birr in gross profits, and 41 million birr from general insurance profits. Net profits were at 38.2 million birr up from the previous financial year’s36.8 million.
The company’s investments paid off, with earnings from investments up to 57.3 million birr. The report stated interest earnings from bank deposits reached 18.7 million birr and income from investment shares stood at 11.7 million birr. In the 2014/15 fiscal year, the company has earned 26.1 million birr from rent.
Unusual in the sector, gross insurance claims paid out to claimants decreased by one percent, 2.1 million birr, in the 2014/15 fiscal year. A year ago, the company settled 207.1 million birr in clams.
Africa Insurance is amassing a wealth of assets, now valued at 610 million birr; a year ago the company’s total assets stood at 644 million birr. It is also following a fierce expansion of its paid up capital, one of the largest in the sector, which now stands at 145.7 million birr.
Sign of the company’s growth and expansion can be seen across the city with new building under construction on Bole Road.
According to Kassahun Begashaw, Manager of Marketing and Business Development, construction of the 12-storey building on Bole Road by the contractor Teklebrehan Ambaye General Contractor commenced early this Ethiopian year and will be complete within 18 months time. The building will be Africa Insurance’s future head quarters.