Hibret Insurance Company S.C. has announced a 14.5 percent increase in net profit after tax to 965.32 million birr for the 2025/26 fiscal year, despite facing a sharp tax increase that weighed on overall earnings and diluted earnings per share.
Addressing shareholders at the company’s 32nd Ordinary General Assembly at the Addis Ababa Skylight Hotel, Board Chairman Wondwossen Teshome described the financial results as a testament to operational agility.
”This performance represents a resilient achievement achieved amid broader macroeconomic headwinds, persistent inflationary pressures, and dynamic regulatory shifts in the financial sector,” Wondwossen stated.
According to the insurer’s annual report, profit before tax climbed to nearly 1.38 billion birr, up from 1.01 billion birr in the previous fiscal year, supported by robust expansion across core insurance underwriting and investment activities. Net profit after tax expanded from 843.15 million birr recorded in 2024/25.
However, board members noted in the annual report that profit expansion was heavily moderated by corporate tax obligations. Hibret’s tax expenses surged 151.63 percent to 415.11 million from 164.90 million birr in the preceding year—a spike primarily driven by recent legislative amendments targeting investment income.
Despite the fiscal squeeze, the board proposed distributing 868.79 million birr in dividends to shareholders, following a mandatory 96.53 million birr transfer to legal reserves.
According to audited financial statements presented to shareholders, total gross written premiums across Hibret’s life, non-life, and general Takaful lines rose 24.18 percent to 3.42 billion birr, up from 2.75 billion birr in 2024/25.
Non-life insurance remained the anchor of the firm’s underwriting portfolio, generating 3.17 billion birr in premiums. Life insurance operations contributed 196.80 million birr, while general Takaful operations generated 54.34 million birr.
Overall insurance revenue expanded 34.23 percent to 3.14 billion birr. While insurance service expenses climbed 41.84 percent to 1.74 billion birr —reflecting broader inflationary pressures and rising claim costs—the company’s underwriting efficiency produced a 43.39 percent jump in its net insurance service result, reaching 1.10 billion birr.
Motor insurance continued to dominate the non-life portfolio, accounting for 63.49 percent of total non-life premiums, up from 58.88 percent in the previous year. Miscellaneous insurance followed at 8.17 percent, while fire and general accident insurance made up 6.31 percent. Marine, liability, engineering, pecuniary, and aviation coverage comprised the remainder.
Notably, engineering insurance registered a sharp 60 percent decline, which the report attributed directly to “a broader slowdown across the domestic construction sector,” even as all other non-life classes posted positive growth.
Complementing its core underwriting performance, Hibret’s net investment income grew 32.64 percent to 722.12 million birr, providing substantial balance-sheet support.
During the reporting period, the insurer continued to fortify its capital position. Paid-up capital expanded to 1.88 billion birr by June 2026 and subsequently rose to 1.95 billion birr, keeping the firm on track to meet its shareholder-approved 2 billion birr target.
The company also expanded its physical footprint through key real estate acquisitions, including a seven-storey commercial building in Bole Bulbula and dedicated operational space in Kazanchis.
