United Insurance Company SC (UNIC-Ethiopia) earned 72 million birr in gross profits before tax for the 2015/16 financial year.
The insurance company that has shown significant success in terms of expanding equity in real estate investment secured a slightly higher profit than the preceding year.
According to the annual report of the insurance company it earned about 61 million birr net profit after tax for the year that ended on June 30, 2016.
Meanwhile the earnings per share saw a modest decrease compared with the preceding year.
The report indicated that the earning per share for the year stood at 312.6 birr, which was 384.4 million birr in the 2014/15 fiscal year.
“The earning per share decrease occurred because the company’s paid up capital grew from 175 million in the past year to over 234 million birr as of June 30, 2016,” the report explained.
A year ago the company shareholders agreed to expand capital to quarter billion birr to make it financially solvent.
The report added that the company has also engaged in investments with a long return (construction of two buildings with fund and equity investments) and has experienced an increase in claim costs.
The non life (general) insurance written premiums grew by 6.2 percent over the preceding year and stood at about 315 million birr. The amount makes the insurance company one of the largest even though their performance was below expectation, according to UNIC report.
Written life insurance premiums also registered growth of 6.3 percent and reached 27 million birr.
In the reported year the company equity investment reached 96.8 million birr growing by 30 percent from 74 million birr a year ago. It has finalized a special department store and recreation center in Akaki Kaliti, while the construction of the head quarters at Tewodros Square is in the final stages.
The company’s total assets reached 781 million birr, which was 648 million birr a year ago