Appoints new CEO
One of Ethiopia’s youngest insurers, Oromia Insurance Company (OIC), experienced a large increase in claims this year which lead to a 33.4 million birr gross profit in 2015/16.
According to its annual report that number is a 37 percent decrease from the 53.5 million birr it earned a year ago.
Net profits after tax and legal expenses decreased by 27 percent to 28.5 million birr.
Gross claims rose by 48 percent to 261 million birr, a sharp increase from 176 million birr a year ago.
The share of auto and truck insurance took the lion’s share of claims at 86 percent, which is the same as the preceding year.
Net claims stood at 188.6 million birr, a growth of 30 percent. Automobile claims grew by 28 percent.
OIC had hoped to sell more insurance policies. Even though they earned 12 percent more in premiums than the year before their annual report indicated that their goal was 27 percent. Ethiopian insurance companies have seen an average growth rate of 16 percent.
According to the report the insurance firm earned 334 million birr in premiums. Car insurance earned 72 percent which is higher than their goal of 64 percent.
The company’s assets grew by 28 percent to over 597 million birr. The total capital grew 18 percent to 139 million birr.
In a related news, the Board of Directors of the firm appointed Asfaw Benti as the new CEO. Asfaw has been working in different insurance firms for over two decades. According to the press release the company sent, Asfaw used to lead Nile Insurance.
Oromia Insurance Company S.C was established in 2009, now OIC transacts all classes of insurance from non-life insurance, to life insurance and micro insurance. The insurance firm was established by 540 founding shareholders that grew to 815 currently and with a paid-up capital of 26 million birr which now reaches 84.6 million birr.