Nile Insurance, not a great year but still growing

It has not been a great year for the twenty-year-old Nile Insurance Company. The financial company has registered lower profits over the past fiscal year with lower revenue and a significant decline in returns per share. However, there is growth in Nile’s overall business outlook in the 2014/15 fiscal year.
According to Nile’s audit report, the insurance firm has secured 46.8 million birr in net profits a staggering decline from 64.8 million birr in net profits a year ago. The current year report did not include the 3.5 percent growth in life insurance (long term insurance), with profits calculated every three years, which may partially account for the decline. The company’s earnings from general insurance were 48.9 million birr before tax, a declined of 15.2 percent compared last year’s 57.6 million birr.
The earnings per share for the year have also declined significantly; a shareholder can expect only 311 birr in returns from their 1000 birr shares whereas last year, returns were 598 birr.
However, it is not all downhill for the insurance company, Nile’s gross written premium for general insurance has grown by over 14 percent in the past fiscal year, now at 343 million birr, from 300.4 million birr a year ago. The net earning premiums also show a significant growth of 21 percent. According to the report, the premium net earned for this year was 281 million birr, which was 232 million birr in the 2013/14 fiscal year.
Due to the high impact of large engineering, pecuniary, liability, workmen’s compensation and motor related losses in the past fiscal year, the insurance firm has paid net claims of 176 million birr, a 15 percent hike. The lion share of total claims paid was, as per usual to motor related incidents.
The total incurred amount for the year has stood at 192.5 million birr with 18.4 percent growth; while the loss ratio dropped to 68.6 percent from 70 percent of a year ago result.
The underwritten surplus for the year increased to 75 million birr, a 27 percent growth. On its investment in the Bank of Abyssinia it has earned 43.8 million birr, while it has earned 2.3 million birr from other sources.
The company total assets have grown by 18 percent to 646 million birr and Nile’s paid up capital is now a high 156.7 million birr, up from 100 million birrg