One of the oldest private insurers in the country Africa Insurance Company, seems to have been able to achieve quite a bit in the past fiscal year.
During 2015/16 their income from written premiums increased by 16 percent or 56 million birr and stood at 406.8 million birr. The company earned 351 million birr from written premiums a year ago. Africa Insurance was one of the few insurers to see profits from premiums dramatically increase.
Almost all of the claims, 94 percent, were paid out to vehicle insurance customers
The report stated that the gross written premiums for general insurance came to 374.5 million birr. This was an increase of 47 million birr or around 14 percent compared with the 2014/15 fiscal year.
The total paid up capital reached 162.4 million birr. This is one of the biggest capital amounts in the industry. In the 2015/16 fiscal year the company paid 281.2 million birr in claims. This is an increase of 37 percent.
“Out of the premiums registered for the financial year 263.7 million birr or 71 percent was registered by branches based in the capital,” the report explained.
The company’s annual report indicated that during the year profit from general insurance was 41.6 million birr before tax, which is a slight reduction from the previous year. A year ago the company registered a gross profit of 43.9 million birr before tax. That figure included 2.9 million birr from the long term or life insurance sector.
The company had 767 million birr in total assets. General insurance took up 652 million birr and the life insurance 115.3 million birr. Africa Insurance paid 205 million birr in claims to its customers that is an increase of 76 million birr over the previous year. Almost all of the claims, 94 percent, were paid out to vehicle insurance customers, (cars and trucks). The remaining 6 percent went to eight other types of insurance.
Insurance not related to motor vehicles made up 17.1 million birr of the total claims that paid for the year.
A year ago the company paid 186.9 in motor vehicle claims in the past year performance claims increased by 77.2 million birr, reaching 264.1 million birr. This is an increase of 41.3 percent compared with the total claims a year ago.
The company has a large building at Bisrate Gabriel and is constructing another building along Bole road. When it is finished in the next few months it will become the permanent head quarters of Africa Insurance.
In the reported period the insurance company established 21 years ago opened five branches making its total number of branches 26 as of June 30, 2016.