Hibret Insurance S.C. is preparing for a new phase of expansion, with plans to diversify its revenue sources, strengthen its market presence, accelerate digital transformation and pursue a potential listing on the Ethiopian Securities Exchange (ESX).
The plans follow a strong financial performance in the 2025/26 fiscal year, during which net profit increased by 14.5 per cent to 965.32 million birr. Gross written premiums across its non-life and life insurance businesses, together with General Takaful contributions, rose by 24.18 per cent to 3.42 billion birr.
According to its 2025/26 annual report, Hibret is preparing a five-year strategic plan covering the 2027/28–2031/32 financial years while implementing its 2026/27 annual business plan. The plans will guide its next stage of development, focusing on financial resilience, operational efficiency, business diversification and long-term value creation.
One of the company’s most significant strategic developments is its preparation to enter Ethiopia’s emerging capital market.
On June 29, 2026, the Ethiopian Capital Market Authority (ECMA) approved Hibret Insurance’s share registration statement, making it the first insurance company in Ethiopia to receive such approval under the country’s capital market regulatory framework.
The share registration approval is distinct from a listing on the ESX, which remains a potential next step in the company’s expansion plans.
Hibret has also strengthened its financial foundation through a substantial capital increase. Following a shareholder decision in December 2025 to raise its capital to two billion birr, paid-up capital increased by nearly 40 per cent, from 1.34 billion birr in 2024/25 to 1.88 billion birr by June 30, 2026.
The increase is expected to support business expansion, reinforce the company’s ability to meet policyholder obligations and provide greater financial capacity to pursue its strategic priorities.
Wondwossen Teshome, chairman of the Board of Directors, said expanding the customer base and reducing dependence on non-life insurance are among Hibret’s major priorities.
The annual report identifies life insurance and General Takaful as important growth areas. The company plans to target high-potential market segments and strengthen distribution partnerships with insurance brokers, banks, microfinance institutions and other financial service providers.
During the 2025/26 financial year, non-life insurance generated 3.17 billion birr in gross written premiums, accounting for approximately 93 per cent of the company’s combined premium and contribution income. Life insurance contributed 196.8 million birr, while General Takaful generated 54.34 million birr.
Despite their smaller contributions, both segments recorded strong growth. Life insurance premiums increased by 38.69 per cent, while General Takaful contributions rose by 70.07 per cent.
The results indicate opportunities to expand in less-developed insurance segments and build a more balanced business structure. However, the company still faces challenges in making its emerging businesses financially sustainable.
General Takaful recorded a loss of 7.31 million birr during the year, although this represented a 37.4 per cent improvement compared with the previous financial year.
Hibret’s planned partnerships with banks and microfinance institutions could help it reach customers through established financial networks and introduce insurance services to individuals and businesses with limited access to formal insurance products.
Digital transformation is another central pillar of Hibret’s strategy as it seeks to improve service delivery, reduce operating costs and respond to changing customer expectations.
The company plans to accelerate implementation of its new core insurance system, upgrade digital platforms and customer service channels, expand self-service capabilities, and automate key operational and reporting processes.
According to Wondwossen, the Information Systems Management Department completed nearly all its core-platform readiness and departmental automation projects during 2025/26.
The company also upgraded software and hardware across its branches to improve connectivity and strengthen data centre capacity.
However, the transition to the new core insurance system experienced delays, while the acquisition of a separate life insurance system was postponed to the following financial year. Completing these projects has consequently become a priority for 2026/27.
Hibret also intends to strengthen cybersecurity, information governance and business continuity systems to support secure and reliable operations.
The company is seeking to increase income from rental properties, recoveries, salvage disposals and other sustainable sources.
During the reporting period, Hibret acquired the Alpaulo Building, a commercial property comprising a basement, a ground floor and five additional floors in the Beklo Bet area of Addis Ababa.
It also acquired office space at Kazanchis Real Estate, to which its Kazanchis Branch Office relocated and began operating.
The properties are expected to strengthen the company’s asset base, support its operational requirements and generate additional income over time.
Hibret also plans to manage excess liquidity through short-term investments and, where commercially viable, income-generating real estate investments.
Investment activities already make a significant contribution to its financial performance. Net investment income increased by 32.64 per cent to 722.12 million birr during 2025/26, supporting growth in profit before tax.
Despite its expansion ambitions, Hibret faces financial and operational pressures that could affect the sustainability of its growth.
Insurance service expenses, before net reinsurance expenses, rose by 41.84 per cent to 1.74 billion birr during the reporting year. This exceeded the 24.18 per cent growth in combined gross written premiums and General Takaful contributions.
The increase was particularly pronounced in non-life insurance, where service expenses rose by 51.74 per cent to 1.61 billion birr.
Wondwossen said the company would maintain strict cost discipline across operational, administrative and capital expenditure while strengthening underwriting standards, claims management and risk assessment.
Hibret had 614 employees at the end of the reporting year, compared with 584 a year earlier. During the period, 523 employees participated in training programmes designed to strengthen their professional and operational capabilities.
The company plans to continue recruiting experienced insurance professionals, improving technical skills, developing leadership capabilities and expanding succession planning.
It also identifies a shortage of experienced professionals in Ethiopia’s insurance industry as a challenge affecting operational efficiency and service delivery.
Customer retention, timely claims settlement, complaint resolution and insurance awareness campaigns will remain important components of its efforts to strengthen customer relationships and market confidence.
