Lion Insurance premium grows but pays out more claims

Lion Insurance Company earned 17 million birr in gross profits and 15 million birr in net profits largely from bringing in a significant amount of income from premiums. The company’s gross written premiums grew 25 percent last fiscal year, standing at 282.1 million birr, up from 225.4 million birr a year ago.

However, even though their premiums increased, their profits decreased when compared with the 2014/15 fiscal year. This is largely because, as other insurance companies have also experienced lately, the amount they paid out in claims increased. Their claims increased by 46 percent compared with 2014/15, making the amount paid out in claims 137.7 million birr, according to the report.

Motor class of business (auto and truck insurance) was 70.4 percent of Lion’s gross written premiums. This is slightly better than their projection of 62.5 percent. The non-motor category class of premiums took up the remaining 30 percent. Pecuniary was the highest contributor at 11.2 percent followed by marine insurance at 4.5 percent.

In the budget year the company’s investment was 61 million birr.  As of June 30, 2016 Lion’s assets grew by 24 percent reaching 335 million birr up from 271 million birr a year ago.

In related news Lion Insurance, which was established around a decade ago, inaugurated a new building in the Hyaya Hulet area. The building cost 79 birr and has seven stories, according to a statement the company sent to Capital.