To raise the paid-up capital to 2.5 Billion birr

Nyala Insurance S.C. (NISCO) disclosed that it has recorded a gross profit of Birr 263 million from its general and long-term insurance operations, an all time high and an increase of 36.1 per cent compared to the previous fiscal year.
The shareholders have also unanimously agreed Birr 126 million to be retained from the net profit in order to increase the paid-up capital of the company to over Birr 830 million, and decided to further raise the paid-up capital to Birr 2 billion and 500 million within the next five years!
During his presentation on the company’s annual performance report to the company’s shareholders who attended the 28th General and the 21st Extra Ordinary General Meeting held at Sheraton Addis on 15th December 2022, Getachew Birbo, the Chairman of the Board of Directors, said that despite sharper economic slowdowns along with cost of living crisis, NISCO has realized remarkable achievements as compared against the preceding fiscal year, 2020/21.
According to the chairman’s report, the underwriting surplus generated from the general insurance businesses has surpassed Birr 196.2 million, showing a total growth of 22.2 per cent as weighed against the preceding achievements.
Similarly, the chairman underscored that NISCO also registered a 64.9 per cent growth in its long-term (life and health) insurance business and thereby secured Birr 186.2 million, and added the total asset of the company stood at Birr 3 billion, an increase of 21.1 per cent over the previous fiscal year.
On the other hand, the net claims of the company slightly increased from about Birr 175.3 million to Birr 183.1 million, mainly due to an increase in motor insurance claim costs, he outlined.
The chairman added that the reasons for the remarkable achievements in the premium income were due to the company’s prudent underwriting practices, implementation of new business innovations based on the customers’ need assessments.
Yared Mola, the Chief Executive Officer of Nyala Insurance S.C., on his part underlined that Nyala Insurance has scored remarkable achievements by implementing prudent underwriting and risk management schemes, availing new insurance products based on customers’ need and demands, and other important business strategies.
He also added that NISCO is exerting utmost efforts to be accessible to the digital natives within short period of time.
According to the CEO, NISCO is further ready to avail its products and services based on revamped business philosophies of profitable growth, insure-tech and digitalization, customer centricity, operational excellence and the blue move initiatives.
Established in 1995 with a paid-up capital of Birr 7 million, NISCO has contributed three new insurance products to the Ethiopian insurance market: namely, ለ-Mobiሌ (a mobile devices insurance plan), Diaspora Special Insurance and International Health Insurance (which covers up to one million USD costs of medical services) including medical evacuation and air ambulance services.

Bunna Bank, one of the banks established with a mass base, reels in over a billion birr in profits for the first time in the financial year that came to a close in June.
Despite the ups and downs in the economy, the bank disclosed that it had a successful year as it saw its operations expand in every aspect.
At the heart of one of its success stories for the year was its growth in deposit mobilization which increased by close to a third in comparison to the previous financial year.
According to the annual report disclosed by the bank during its general assembly held a week ago, the deposit mobilization stood at 27.2 billion birr as of June 30, 2022. The deposit amount showed an increase of 6.7 billion birr or 32.8 percent in contrast to the preceding year.

The financial firm’s loans and advances have also seen a growth of 41.3 percent reaching a total of 25.8 billion birr.
In the fiscal year, the bank secured 4.54 billion birr which is an increase of 37.6 percent or 1.25 billion birr from the year that closed June 30, 2021.
Of the total, the interest income took 81 percent while the remainder was from other businesses that the bank operated in during the course of the year.
As a result, Bunna’s profits for the year peaked at over a billion birr for the first time. According to the annual report, the bank’s gross profit stood at 1.19 billion birr by increments of over a quarter when compared to the preceding year.
A year ago, the bank’s gross profit was 937.3 billion birr, 26.6 percent lower in contrast to the blossoming year under review.
The Bank’s booming profits after tax netted at 881 million, an increase of 21 percent up from 670 million from the previous year.
Thus its earnings per share stood at 29.8 percent up from 29.3 percent a year prior.
The Bank’s assets, in the year, continued to expand reaching a total of 34.1 billion birr which was an increase of over 31 percent or 8.16 billion birr.
Similarly, its capital surpassed five billion birr to reach 5.1 billion birr showing increase of 33 percent in a single year. Of the total capital, the paid up capital was 3.3 billion birr as of June 30, 2022.
According to the report, the paid up capital has increased by 32 percent or 807 million birr in a single year alone.

United Nations Economic Commission for Africa (ECA) in collaboration with the FDRE Ministry of Trade and Regional Integration (MoTRI) produces an Amharic translation of the African Continental Free Trade Area (AfCFTA) agreement. Following the translation, the Ministry is now under preparations to hold discussions on the AFCFTA with scholars for implementation.
“Ethiopia has now select around 6420 goods and services to be included in the free trade agreement, previously different discussions have been held with different stakeholders and now we are planning to have comprehensive discussions with scholars,” said Tagesse an expert at the Ministry indicating that will be followed by negotiations with other countries.
Ethiopia signed the AfCFTA agreement in Kigali on the historic day of 21 March 2018, with the following year the House of Peoples’ Representatives ratifying the agreement on March 2019.
Unlike a vast majority of African countries, Ethiopia is neither a member of the World Trade Organization nor a full participant in the trade liberalization initiatives within the Continent through regional economic communities.
ECA stated that in appreciation of this fact, it has been committed to ensuring Ethiopia gets all the technical support it needs to succeed in this area.
“Harnessing the full benefits of the AfCFTA starts with its domestication. Making the agreement accessible in the local language facilitates domestic policy processes and brings the AfCFTA closer to the people,” the Commission said.
ECA with the leadership of the Ministry of Trade and Regional Integration of Ethiopia and financial support from the European Union, launch the Amharic translation of the Agreement, the Commission further confirmed.
On related news, trade deals under the AfCFTA agreement are getting underway.
Kenya’s recent twin shipment of batteries and tea to Ghana – the first from an East African economy under AfCTFA – has injected fresh impetus into the fledgling free trade initiative. The shipments are a part of a trial phase to ramp up trade under AfCFTA involving Kenya, Ghana and six other states: Cameroon, Egypt, Mauritius, Rwanda, Tanzania and Tunisia.
The United Nations ECA estimates that AfCFTA will boost intra-African trade by 52.3% once import duties and non-tariff barriers are eliminated. Currently, exports within the continent amount to only 16.6% of total trade, according to the African Development Bank.
Historically, more than 75% of African exports outside the continent consisted of extractive commodities, whereas only 40% of intra-African trade was extractive.
The AfCFTA was established to position Africa as the largest free trade area in the world, enabling tariff reductions and market liberalisation while significantly reducing barriers to trade.

Abay Insurance Company, one of the mid age insurer, surpasses projected profit targets for the 2021/22 financial year.
In its annual report, the insurer highlighted it attracted massive success in its operation despite slight reduction in the life business sector, which more often than not is performed poorly in the sector.
In the financial year, the firm’s total premium production expanded to 424 million birr drawing increments of 17 percent in comparison to 362 million birr of the preceding year.
From the total gross written premium, 11.3 million birr was secured from long term insurance business, while the rest went to general insurance class of business; and of that, the motor class took the largest chunk as is the norm in the sector.
Regarding claims, during the 2021/22 financial year, the total net claim incurred of general insurance was 134.3 million birr which increased by almost 19 percent in contrast to the year prior.
Similarly, the net claim paid in the year has increased by 12.5 percent to reach 102.4 million birr from 91 million birr a year ago.
In the year, the overall claim ration dropped by 3.6 percent to stand at 53.7 percent. The report stated that in the reporting period the net earned premium with respect to non-life insurance business for the year 2021/22 was over 250 million birr.
Similarly, the underwriting surplus attained almost 149.5 million birr, which in retrospect of the year prior is an expansion of almost a third.
“This achievement is due to the implementation of prudent underwriting practice and utmost professionalism,” the report of Abay Insurance cited acknowledging the success.
For the year, the company also grasped massive success in connection with investments aligned with different involvements including interests secured from time deposit. The insurer’s investment return was 70 million birr which is a 50 percent growth from last financial year’s performance.

The non-life insurance business continues to thrive as almost 114 million birr in gross profit was recorded, which is a 50 percent increase from 75.5 million birr in the 2020/2021 financial year. The gross profit has also surpassed by 15.4 percent in comparison to the targets set by the insurer.
The company projected to secure almost 99 million birr in gross profit for the year from the specific business wing, which is the most profitable sector in the industry in Ethiopia.
In general for the year, the company has secured 105 million birr profit after tax which is a 54.4 percent boost in contrast to 68 million birr in profits of June 30, 2021.
The profit increment has allowed the insurance company to secured 24 percent higher earnings per share (EPS) growth for the year under review. According to the annual report, the year’s EPS stood at 31 percent from 25 percent a year ago.
The growth in asset has also been the other success that the company secured for the year. In the year ended last June, the company’s asset expanded by almost 41 percent to cap at 1.5 trillion birr with the general insurance assets constituting 64 percent, followed by fixed asset and share investment.
At the end of the reporting period, the company’s paid up capital reached 361.2 million birr with 29 percent increment. However, the total shareholders’ funds at the period have surpassed half a billion birr to stand at 505 million birr.