Hibret Insurance, celebrating three decades in the insurance industry, has announced impressive results for the last fiscal year, overcoming significant challenges including unethical business practices and regulatory pressures. The company reported a total premium revenue of approximately 1.96 billion birr for the fiscal year ending June 30, 2024, a substantial increase from 507 million birr in the previous year.

During the 30th regular general meeting of shareholders held on November 8, 2024, Wondwossen Teshome, Chairman of the Board of Directors, acknowledged the hurdles faced by the industry but emphasized that the year was ultimately a success for Hibret Insurance. He highlighted that while fixed vehicle premium rates set by the National Bank of Ethiopia and African Re posed challenges, escalating competition and unethical practices within the industry also contributed to difficulties.

The meeting addressed concerns regarding rising operational costs and declining prices in spare parts and medical services, which have further strained the insurance landscape. Despite these challenges, Hibret Insurance’s motor class of business continued to dominate its portfolio, accounting for 63.08% of total premiums as of June 30, 2024.

The report indicated that non-life insurance generated approximately 1.7 billion birr of the total premium revenue, with fire and general accident classes following at a distant second with a share of 10.27%. Other classes such as liability, engineering, aviation, accident & health, and marine contributed lesser amounts to the overall portfolio.

In terms of financial growth, Hibret Insurance’s paid-up capital reached one billion birr, reflecting an increase of 221 million birr from the previous year. The company also reported a profit per share rise to 47.99%, despite an overall growth rate in the insurance sector averaging 23.72%.

Additionally, Hibret Insurance paid out compensation amounting to 693 million birr during the current fiscal year, marking a significant increase of 49.57% compared to the prior year. Established in November 1994 by 87 Ethiopian founders with an initial capital of 25 million birr, Hibret Insurance has evolved significantly since merging with Lion Insurance Company SC in 2002.