ADDIS ABABA (NISCO)–Nyala Insurance S.C (NISCO) disclosed that it has registered the industry’s all-time high results in its core businesses in the 2017/18 fiscal year.
A report presented by Kemal Mohammed, Chairman of the Board of Directors of NISCO, on the 24th Shareholders’ General and the 17th Extra Ordinary General Meeting held at Sheraton Addis on 4th December 2018, reveals that Nyala Insurance has registered Birr 769.4 million gross premiums, an increase of 76% compared with the preceding year.
Ato Kemal revealed that this result is not only the top result among the 16 private companies but also the highest record since the private insurance companies started operation in Ethiopia.
He went on say that 91 per cent (Birr 700.7 million) of the total gross premium was earned from the general insurance businesses while the life insurance business accounts for Birr 68.6 million.
Accordingly, Nyala Insurance was able to amass a gross profit of Birr 159.6 million in the year under review from both businesses, which is a winning jump by 21.7 per cent from the earlier fiscal period. This is the highest profit record in the history of private insurance companies, the chairman added.
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Ato Kemal further indicated that during in the captioned budget year the company’s total income grew by Birr 498.2 million, up from Birr 430.5 million, a 16% rise compared with the previous same period.
“The total asset of the company stood at Birr 1.9 billion, depicting an increase by 32% over similar period last year of Birr 1.4 billion. Similarly, the company’s paid up capital at the end of the year under review reached at Birr 340.5 million showing a significant increase by 32% and 51% from last year and the strategic target of Birr 258.4 million and Birr 225.0 million, respectively,” the report reads.
Ato Kemal stated the company’s net claims stood at Birr 163.5 million which is insignificant increment weighed against the previous year’s amount, Birr 160.8 million.
The victorious achievements are said to be very significant and proud to the shareholders, management, staff and business partners of the company, the chairman underlined.
According to him, apart from coupled and committed efforts of the Board of Directors, Management and staff of the company, the Birr-159.6 million-gross profit margin was secured by putting appropriate risk management techniques into place, winning mega businesses and excelling at customer services to attract more potential customers.
Ato Yared Mola, Chief Executive Officer of NISCO, said on his part that even if the company managed to register an all-time high result in our country, the overall performance of insurance in Ethiopia is still substantially low.
“Insurance penetration (total premium as percentage of GDP) is 0.4 in Ethiopia while it is 2.6 in Kenya; premium per capita (insurance density) is 2.9 USD in Ethiopia while it has reached 40 USD in Kenya,” he added.
Ato Yared cited that lack of dynamism and absence of strategic alliance among industry players tightened regulation and lack of skilled manpower as critical challenges faced by the industry.
“We have now a growing middle income class in the country which is an ideal platform for the development of insurance specially life insurance. When our industry is deeply touched by the government’s new reform initiative, there is no doubt that Ethiopian insurers will thrive and grow to be internationally competitive companies”, he underlined.
He also expressed his hope that the government and the regulatory body give due attention for the expedited change be happening to the industry.
Source: Nyala Insurance S.C