UNIC uniquely soars despite global pandemic and national instability

(Photo: Anteneh Aklilu)

The United Insurance Company (UNIC) in its gross written premium that includes both Life and general Insurance sector has registered massive improvement despite the effect of instability and the surge of the pandemic to the economy in the concluded budget year.
According to the report of UNIC, as from the concluded budget year of the 30th of June 2020, the gross written premium of both life and non-life stood at 597 million birr, a raise from 533 million birr with respect to the previous year.
Of the total premium, the non life or general insurance sector contributed to over 551 million birr whilst the life sector share was about 46 million birr. “The combined gross written premium grew by about 12 percent in the stated period,” the annual report explained.

(Photo: Anteneh Aklilu)

The report indicated that on all the non life insurance businesses, the premium had climbed excluding the marine cargo/ inland transport business that dropped by 13 percent. This drop was attributed to foreign currency shortage that importers should access for importation.
As the sector tradition, the motor class business retained its top spot in terms of premium portfolio with 62 percent share but it has decreased from 63 percent of the preceding year.
Fire and general accident and engineering followed by 11 and 7 percent respectively.
Net claim incurred for both sector had shown an increment of 6 percent and reached 241 million birr. However, the corporate loss ratio has shrunk for the second consecutive year. This financial year, the loss ratio stood at 55 percent, the previous two years the percentages were 58 and 68.
The loss ratio for the non life sector has dropped to 56 percent in the reviewed year from 60 percent of the previous year. The motor sector loss ratio has continued at the upper with 66 percent share.
The life sector loss ratio was 22 percent that is far below from the industry average of 58 percent.
The corporate underwriting profit that includes life and general sectors has massive grown with more than one fifth of the preceding year.
The report indicated that the underwriting profit for both sectors is 210 million birr in the 2019/20 budget year. This is a 21 percent growth in comparison with the 2018/19 performance that was 173.5 million birr.
The non life sector underwriting profit was boosted by 27 percent and currently stands at 188 million birr. Meanwhile the motor sector took the lion share for claim and loss ratio since it contributed 43 percent for the year surplus.
In the reported year, the gross profit of UNIC has also climbed by 22 percent, while the net profit after tax has registered a 17 percent increment compare with the performance of a year ago.
According to the annual report of UNIC, the profit before tax for 2019/20 budget year stood at 148 million birr from 121 million birr of the preceding year.
At the same time the company after tax profit has surged to 124 million birr, up from 106.6 million birr in 2018/19 budget year.
Due to the company’s decision to climb the paid up capital that reached at 436 million birr as of June 30, 2020 the earning per share has shown decrement in the reported year compared with the preceding year. In accordance, the earning per share stood at 29.9 percent that was 33.8 percent in the 2018/19 year.

(Photo: Anteneh Aklilu)

According to the decision of the extraordinary meeting that was held in November 2018, the paid up capital is expected to reach half a billion birr by November 2022.
The company asset has also risen to 1.6 billion birr up from 1.5 billion birr.
The insurer has 51 branches including 12 contact offices. It has four buildings including the new head quarter inaugurated in the past budget year that contributed to amass huge amount of revenue from rent. The company said that besides generating huge amount form rent income it also saved significant amounts from rent expense.

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