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.
Insuring Success: Lion Insurance reports higher profit
Ethio lease finances a healing touch to the health sector
Ethio Lease as part of its initiative to provide diagnostic equipment to the health care sector hands over the High-tech Medical equipment on a financing leasing basis.
Ethiopia’s first privately-held and foreign-owned equipment leasing company Ethio Lease handed over a state-of-the-art CT scanner with effective, safe, and high-quality imaging equipment to Alatyon Hospital which is important for medical decision-making.
During the handover ceremony, Dr. Lia Tadesse, Minister of Health of Ethiopia said, “The private sector can play a major role in improving the health sector in the country, and the government in its 10 years development plan incorporates a deep working relationship with sectors alike.”
Lack of foreign currency is one of the challenges pulling back the country in importing high-tech Medical equipment. Foreign currency, in this regard as Dr Lia said Ethio Lease is playing a big role in the solving the challenge.
Ethio Lease’s offerings help alleviate both the liquidity and foreign exchange shortages that hamper the private sector to play a significant role in the development of the country. The company is also contributing to the modernization of Ethiopia’s agricultural sector, by importing and leasing heavy-duty agricultural equipment.
Ethio Lease has signed leases for multiple units of high-tech medical imaging equipment with medical and diagnostic centers throughout the country. The equipment comes with a full-service warranty which includes spare parts and maintenance of the equipment.
“The Global COVID 19 pandemic that is rampaging countries around the world has called for a more strengthened medical sector. In countries like Ethiopia, capital and foreign exchange is a significant challenge for which Ethio Lease has brought a complete financing solution.” said Ethio Lease CEO, Girum Tsegaye adding that, this medical equipment handover of this is a demonstration of continued commitment to supporting the government and the private sector.
“Ethio Lease will continue its support of the government’s effort to further the development of the medical sector, provided that the necessary facilitation and support from the respective government agencies continue to be forthcoming.”
Ethio Lease, a subsidiary of Africa Asset Finance Company Inc. (AAFC), began operations in August 2019 after receiving a license from the National Bank of Ethiopia, the first of its kind, and continues to address the equipment shortage and foreign exchange (FX) 
challenges faced in Ethiopia, providing bespoke equipment financing and a wide range of leasing services for selected equipment categories, serving various sectors including agriculture, healthcare, energy, food and coffee processing, and manufacturing.
Ethio Lease buys and imports equipment, arranges regular maintenance and monitors proper use throughout the lease period. To date, the company has signed leasing agreements with more than 100 customers for more than 200 equipment units of various types, worth over ETB 900 million.
