Insuring Success: Lion Insurance reports higher profit

Lion Insurance Company paid up capital climbed by a quarter in the ended financial year, while the profit has increased by over 8 percent.
The insurance company has enabled to write a total premium of 386 million birr with the growth of 2.4 percent compared with the preceding year which is 3.7 percent share of the industry.
According to the annual report of Lion Insurance, in relation to the growth in premium- the net earned premium has increased by 16.7 million birr or 5.7 percent from 293 million birr of 2018/19 financial year to 310 million birr.
The company loss ratio for the year has reduced compared with the 2018/19 period and stood at 59.5 percent from 62 percent.
During the reported year the amount of gross claims paid was 186 million birr, while net claims incurred was 184.5 million birr claims.
The company technical provision stood at 431.2 million birr with a growth of 9.1 percent from 395.3 million birr of the preceding year.
According to the annual report, the underwriting surplus for the year has been expanded by 12 percent and stood at 124 million birr.
From its investment in different companies, interest income and rental income Lion has secured 51 million birr in the year.
For the year, the company net income has been 175 million birr that was 148.5 million birr a year ago, while for the year, the total expense has increased by 22 percent and reached at 121 million birr.
Its profit before tax has climbed by over 8 percent and reached to 53.3 million birr. A year ago the profit before tax was over 49 million birr.
For the year its profit after tax stood close to 52 million birr that was 43 million birr. For the year, the earnings per share has shown slight reduction due to capital expansion and stood at 9.6 percent that was almost 10 percent a year earlier.
Lion’s asset on the reported year that ended on June 30, 2020 has registered an increment of 16.5 percent from 842 million birr from 723 million birr.
As of June 30 the company paid up capital has increased to 148.5 million birr with an increment of 26 percent compared with prior year’s performance, while the subscribed capital has reached at 300 million birr.
The total equity of Lion has expanded to 243 million birr from 193 million birr a year ago.
As of June 30, 2020, Lion has 36 branches and seven contact offices throughout the country.