United Insurance Company SC (UNIC Ethiopia) has registered massive achievements in the past fiscal year with 55 percent profit growth.
In its annual general assembly held at the Ethiopian Skylight Hotel on Thursday November 14, UNIC disclosed that its gross profit for the 2018/19 financial year stood at 121.2 million birr, which is one of the top in the industry.
The net profit stood at 106.6 million birr, which is a 55 percent growth compared with the preceding year’s insurance business or operation profit.
Although in the 2017/18 financial year the company’s net profit stood at 123.7 million birr, Meseret Bezabih, CEO of UNIC, told Capital that the previous year’s profit was high as the insurer had secured large revenue from the sale of its shares in Raya Brewery which BGI Ethiopia fully took over last year.
“Comparing the performance of the two years, that is the 2018/19 financial year’s operation with the 2017/18, in terms of insurance business, the latest year’s achievement is over half of the preceding year’s,” Meseret clarified.
In the 2017/18 financial year, UNIC secured close to 56 million birr from its share sales at Raya Brewery, which is located in Maiychew town, 667 km north of Addis Ababa. It has played a role in increasing the insurance company’s profit for the period.
According to the annual report of UNIC, the 2018/19 underwriting profit stood at 173.5 million birr, which was only 121 million birr in the 2017/18 performance period.
The report indicated that the net income of the past financial year expanded to 258.5 million birr when compared with the 237 million birr a year before last year.
One of the pioneer private insurance companies not only in terms of operation but also in terms of paid up capital, UNIC has registered several significant achievements for the past financial year.
For instance, the loss ratio has declined to 60 percent. The loss ratio for the year 2017/18 was 68 percent; that means the latest performance has declined by 8 percent, which is rare in the sector.
UNIC has also registered the highest premium compared with the industry average. For the reported year the company collected 533.6 million birr in premiums from both general and life businesses, which has increased by 13 percent compared with the preceding year. Since the sector premium increase is 6 percent that indicates that UNIC’s premium growth trend was over double compared with the industry performance.
According to the company report , from the general (non life) insurance business UNIC was able to register close to 495 million birr premium that was 438 million birr a year ago and about 39 million birr from life sector. Due to weak performance in the export /import business, the marine premium has declined, while other businesses grew during the period, according to the annual report.
During its 11th extraordinary meeting held a year ago shareholders agreed to double the company capital to half a billion birr that is one of the highest in the sector. Of the 500 million birr capital, close to 375.6 million birr is paid up as of June 30, 2019.
Based on the 2018/19 fiscal year that is closed on June 30, 2019 the total asset of UNIC has reached to 1.52 billion birr from 1.34 billion birr a year ago.
A week ago the company has inaugurated its head quarter located at Tewodros Square. This new facility increases the assets of the company that also owns two other buildings in Addis Ababa, in Qality and Bole Medhanealem area and one in Bahir Dar. The 12 storey head quarter that has a unique set up of four basement parking areas rests on 2,000 square meters and consumed 300 million birr.
In its 25 year history, the company has settled over 1.7 billion birr in claims for its customers. At the same time the company has settled 7.5 million birr in claims for PVT (political violence & terrorism) insurance coverage, a product that was recently introduced in the country and very few other insurance companies offer.
UNIC was formed by less than 100 share buyers has now 478 shareholders, according to the annual report, while it has 50 branches including 12 contact offices. The company was formed in 1994 with a paid up capital of 8.1 million birr.
This year three insurers including UNIC and one bank celebrate their 25th anniversary in different programs.
United profits up 55%
USAID supports land survey, consultancy
USAID launched the forth land government activity project for urban and rural land. It will remain until 2024.
The new project surveys land information analysis of the land management registration process, utilization of land management system, gathering of pilot areas related to land, Information with the latest technology and efficient production methods.
LGA supports merging the rural and urban land administration functions and services and strong organizational structure amendments.
This project is expected to accomplish the implementation of transparent and sustained integrated land governance systems, establish an operational system for the urban land information system, strengthening the government’s ability to have a strong land information system and policy, through unified land administration roles, setting a land data exchange framework between the public and the government. This could lead to an innovative data and system infrastructure with unified systems platform organizational structures.
Ethiopia’s land governance policy enhances the efficient land administration service and utilization of land, recognition of property rights by introducing a secured and sustained property registration system.
USAID has been working with land tenure and property rights in Ethiopia since 2004.
In the past three projects are lots of assessments has been identifies; the need for awareness on land users on the rights and obligation of the owners, capacity building, georeferenced parcel map and computerized register, Including policy formulation, land legislation, decision making in rural land governance programs.
The old organizational structure of the national, regional and woreda city level, a decentralized database for transferring data at the regional level and federal level are other challenges to developing scalable approaches to adjudicate, demarcate register and certify pastoral landholding and support participatory land-use planning by supporting pastoral institutions in the areas of pastoral regions mainly Oromia, Somalia, and Afar.
The land system is classified within registered (permit hold, state hold and leased hold) and unregistered (non-formal, informal and encroachment).
The new project will help strengthen the institutionalized system for efficiency to land acquisition facilities, access to land for the farmers and safe human settlement, environmentally friendly and gender-responsive, infrastructural development, local service centers land banks and land tribunals.
EU film festival through Nov 24
The 32nd edition of the European film festival opened at VAMDAS entertainment and cinema, on November 14 and will remain until November 24. This year’s festival will show 21 selected films which reflects European arts, culture and history of 20 participant countries from the European Union. Azerbaijan, Belgium, The Czech Republic, Denmark Finland, France, Germany, Luxembourg, Netherlands, Norway, Ireland, Italy, Poland, Portugal, Serbia, Slovakia, Spain, UK, Turkey will feature films. Others are selected by the EU delegation for the African Union.
One local film has been selected for closing day, ‘Running Against the Wind’ Jan Philipp Weyl’s Oscar nominated film was chosen as a perfect illustration of creative interaction between Europe and Ethiopia. Selected short movies made by Addis Ababa university school of fine art students will also be presented.
The European film festival was hosted by the EU delegation as part of the European External Action Service’s network of diplomatic missions and offices in third countries, implements the EU Global Strategy and other key foreign and security policies in close collaboration with the Member States of the EU. The festival is one of the frameworks for promoting cultural relations by increasing awareness of the EU, its institutions and its programs between Ethiopia and the European Union.
NOBLE CAUSE, NOBEL PRIZE
By Getachew Beshahwred
Since the sudden and unexpected rise of a young member of the ruling party, Dr Abiy Ahmed, to the position of Prime Minster, Ethiopia has gone through a lot of phases within a short period of time.
The first phase was EUPHORIA, Uncontrollable Euphoria both at home and abroad. The excitement was huge and an unprecedented. There were huge demonstrations in support of the Prime Minister. There was huge expectation for the country. Almost everyone was filled with pride and hope. May be, we all hoped, that the country and its people after the years of hunger, death and torment, were now on the doorsteps of peace, freedom and prosperity. The ethnic division which was the bedrock of the former government’s political philosophy would be consigned to the ashes of history and would never raise its ugly and dangerous head again, we thought. The election of a young charismatic, educated leader from the Oromo party supported by the other main ethnic party representing the Amhara region was, we thought, a good Omen. In fact, both the Amhara and the Oromo people and their leaders worked hand in hand to bring about this change.
The Prime Minister did not disappoint either. He made excellent speeches and promising policy declarations and ambitions. He released political prisoners and allowed opposition parties and their leaders to return home without any preconditions (that may be the ‘beginning’ of the current problems) and re-established press freedom. He also brought about peace between Ethiopia and Eritrea and opened the border between the two countries, mainly for which he was awarded the Nobel Peace Prize. This is a considerable achievement.
The second phase was DOUBT: The appointment of females to 50% of the cabinet positions, the elevation of women to the presidency of the country and of the Supreme Court and the chairmanship of the National Election Board were ground breaking. However, there were no major policy announcements, decisions or proclamations that would address the huge economic, political and social problems facing the country. Opposition parties and leaders and in some cases their armies which were allowed to enter the country, apparently without any preconditions, and self-appointed groups and ‘leaders’ were not fully challenged when they roam around the country spreading lies, fear and terror amongst the community. The free press was used by some to propagate hate and lies about the history of the country, its people and its leaders. So called experts and so-called professors were seen spreading falsehood on national TV, radio and newspapers.
“If you are emotionally attached to your tribe, religion or political leaning to the point that truth and justice become secondary considerations, your education is useless. If you cannot reason beyond petty sentiments, you are a liability to mankind.” (Dr Chuba Okadingbo).
This brought back the old racial tension. Hundreds of thousands were forced to flee their homes and so many lost their lives. Houses, business premises, and churches were burnt to the ground and in some cases local governments were part of the problem and the central government seems to be a bystander. This culminated in the huge disaster in the Amhara region which led to the Killings of its president and other leaders.
The same people who were excited with the prospect of peace, security and prosperity were now bewildered. The government was powerless to stop the violence against some of its people. This vacuum created a huge opportunity for self-appointed leaders and groups. This was a phase of doubt. But many still hoped that the PM and his government have plans which they have not yet told us, to deal with the serious problems facing the country. All are still waiting for that plan with hope and doubt.
The third phase: DOUBT & OPPOSITION
This is the current phase. Many of the same people who came out in support of the young prime minister are now on the opposite side, mainly not because of what he or his government did but because of what they did not. The government and parliament did not address the security and constitutional issues that could lead to the breakup of the county. In the worst possible scenario, it could lead to a civil war from which no one can come out a winner. This conflict, unless fully and properly dealt with, could lead to what is equivalent to ‘self-assured Mutual Destruction.’
This tension and disorder is created and promoted by few individuals and groups with their own agendas and who are supported by other, domestic and foreign groups, with their own agendas. These groups’ and individuals’ actions and words have in some cases led to the destruction of lives and property. Press freedom comes with press responsivity. If this freedom is abused and resulted in the loss of freedom and in some cases lives of others, the culprits should be held to account for their actions.
“Today we live in a society in which spurious realities are manufactured by the media, by governments, by big corporations, by religious groups, political groups (and individuals)… So I ask, in my writing, What is real? Because unceasingly we are bombarded with pseudo-realities manufactured by very sophisticated people using very sophisticated electronic mechanisms. I do not distrust their motives; I distrust their power. They have a lot of it. And it is an astonishing power: that of creating whole universes, universes of the mind. I ought to know. I do the same thing.” Philip K. Dick (Writer)
“Whoever controls the media, controls the mind.” Jim Morrison (singer and song-writer)
The first duty of a government is the security of the country and its people and inaction cannot be an alternative, and delay in this case is the worst choice. It has to be dealt with now.
“There are risks and costs to action. But they are far less than the long range risks of comfortable inaction.” (John F Kennedy)
The government should denounce, in the strongest possible terms, the individuals and groups responsible, for the carnage they created and instruct law enforcement agencies to take swift legal actions. The security forces should enforce the law and protect people and property from destruction. They should protect the country. That is their duty.
The government and parliament should be bold in their approach to amend the constitution and should at least immediately start public conversations, discussions and consultations. The move to change EPRDF into one national party is to be welcomed and other ethnic parties should follow suit and take themselves out of the ethnic based party system. Addis Ababa, should not really be an issue. Addis Ababa is the Capital City of Ethiopia and it belongs to all Ethiopians. This should not have been an issue at all. This is one problem deliberately created and left for us by the previous government. The city should be led by elected representatives and an elected Mayor as stipulated in the law. Any attempt to gerrymander any future elections, though tempting, should be resisted by all since any doubt on the results of an election could result in more uncertainty, tension and even more violence. This has to be settled soon. Addis Ababa is not only the capital city of Ethiopia but also of Africa. Despite repeated attempts by other African leaders to take away this honour to another African City, all past governments, including EPRDF, have successfully fought for Addis to remain the capital city of Africa. Other international organisations, as a result of this status, have offices and branches in Addis, which has opened up employment opportunities in addition to its considerable impact on the country’s foreign currency earnings. A capital city whose status is not settled and is rather a source of conflict cannot attract foreign interest and investment for itself and the country. In the United Kingdom, there are three devolved governments (Scotland, Wales and Northern Ireland) and England. London which is likely to be the capital city of any future devolved English Government, is the Capital of the United Kingdom; and England does not have a special claim over the city. London belongs to and is managed by Londoners , through its directly elected mayor and 32 borough councils and the City of London, ‘which provide the majority of day-to-day services for their local residents, including education, housing, social services, environmental services, local planning and many arts and leisure services.’
The final phase: FEAR OF THE FUTURE AND STILL HOPE: Unless the government is bold and wise enough, the current situation could lead to an armed conflict between ethnic groups and regions which could lead to a civil war and the destruction of Ethiopia as we know it, from which no one can come out a winner. Nobody wants that. However, the current state of play could lead to this last and destructive phase. The prime minister, in the last few months, made excellent speeches at the National Palace, the millennium hall and the National Parliament, etc. It should now be followed and supported by swift legal action against those who orchestrated this violence and destruction.
The government should address the security, ethnic and constitutional issues that were created by the same ruling party before it is too late.
The government has embarked upon a vast array of economic programs including the possible privatisation of some of the biggest publicly held companies. The objective is to attract foreign investors to the country. However, unless the security issue is addressed and fully settled this economic development plan would be in jeopardy. No investor would be willing to risk his money in an area and a country where lives, buildings, factories and premises would be at the mercy of uncontrollable mobs. Already even current investors are holding back on future investments and it would be difficult to attract new investors under current circumstances. Let us save our people and country first. The rest would then be easier.
The Award of the Nobel Prize, which in my opinion, is well deserved should not be taken to be just about past achievements. It is also about the future. This should give the Prime Minster more determination and energy to bring about unity, peace and security to the country of more than 110 million people. The international community is behind him. Despite the fear and doubts the Ethiopian people are behind him. We all want him to succeed, because his success is our success, his prize is our prize. Ethiopia and its people are the Nobel Peace Prize winners and now they have to live up to its standards. The world expects no less! Alfred Nobel expects no less!
Getachew is the Managing Director of GB & Co Limited, Chartered Accountants and Management Consultants, London. He can be contacted at getachew@gbandco.co
