Gov’t owned insurance company grosses a billion birr

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(L) Kassahun Hailemariam, Director General of the Federal Transport Authority, Dr Sintayehu Wolde-Michael, Director of the Government Finance Agency and Netsanet Lemessa CEO of EIC

The state owned Ethiopian Insurance Corporation (EIC), has surpassed a billion birr in claim settlements and revenue.
Claim payments went up 30 percent from last fiscal year which is 35 percent more than expected. In the 2016/17 financial year EIC settled over 1.3 billion birr in compensation payments to its customers.
According to the annual report presented by Netsanet Lemessa, CEO of EIC, in the past financial year total claims of over 1.3 billion birr were settled.
Claim settlements grew by 350 million birr a 314 million birr increase over the preceding year.
The insurance firm paid out a major settlement for damages to an Ethiopian Airlines plane that crashed at Dire Dawa Airport, and a fire at the Anbessa Bus Enterprise Depot and MM Bedding Industry Plc.
General insurance took almost all of the compensation payment, while long term or life insurance settlements were 42 million birr.
From the total claims the private sector and individuals took 44.7 percent, while the public enterprise and public institution compensation ratio was 28 and 25.1 percent respectively.
Like other insurance companies automobile accidents took up the majority, 61.5 percent, of claims.
The Enterprise has a majority of the nation’s insurance market. It provided over 1.7 trillion birr in insurance coverage, a 109 billion birr increase compared with the preceding year.
The insurance firm took in 2.7 billion birr in premiums last fiscal year. This was slightly less than projected. However, compared with the same period in 2015/16 it shows a growth of 424 million birr. From the total premiums general insurance took in 96.2 percent, while the balance went to life insurance.
Public enterprises made up 66 percent of the premiums. According to Netsanet, the private sector and individuals bought 34 percent of the policies.
In the stated period the insurance giant amassed one billion birr revenue, while their profit before tax is close to 699 million birr.
The stated gross profit for the year went up by 7.2 percent and climbed by over 25 percent compared with the 2015/16 financial year.
EIC has a 36.2 percent market share, while the balance is divided among 16 private insurers.
“The sector has grown by 16.6 percent, while our growth is more than 18 percent,” the ECO said.
The CEO said that ‘tourist risk insurance policy’ will be introduced to the market. The ‘political violence insurance policy’ will be the other new insurance policy that EIC will offer. Few private insurers are offering this product.
EIC has 80 branches including 10 new ones opened in the 2016/17 fiscal year.