17 November 2012

Ethiopia: Nyala Insurance Makes Over 43.1 Million Birr Net Profit

Addis Ababa — The Nyala Insurance Share Company announced that it has made a 43.1million birr net profit last fiscal year. The company put the country's current economic growth as a fertile ground for the success of the insurance industry.

Company CEO Eyob Meherette told journalists last Wednesday that the Company made 56 million profit before tax in the budget year.

"The company has been striving hard to increase its premium. With regard to this, currently its gross premium has shown 34 per cent growth from birr 139 to 187 million which is as per the industry average growth. Life production has also shown a 21 per cent increase, which is more than the industry average for long term business. While the underwriting surplus increased by 85 per cent (from birr 35.8 million to 66.3 million) last year, the net written premium increased by 45 per cent ( from 93.3 to 135.3 million ) and the net earned premium including the reinsurance commission increased by 34 per cent or from 95.9 million to birr 128.5 million in absolute figure", he added.

Underscoring the endeavour made by the insurance company, Eyob said, the company has a plan to strengthening micro insurance. In essence of this, it has a plan to further expand crop and cattle insurance throughout the country. He further noted that if all insurance companies be involved in crop and cattle insurances, farmers can easily get loan which in turn enables them to buy agricultural inputs for their production. To this end, with in 2 to 3 years, the country can ensure food self-sufficiency, he added.

"We believe that the company has been discharging its social responsibility. To further strengthening its coverage, it is trying to address small hold farmers and provide insurance coverage which protect them from unpredictable damages resulted from natural disaster, drought and others calamities,"he added.

Finance and Property Management Executive Officer Woineshet Gossaye on her part said that the existing consistent double digit economic growth of the country, expansion of branches in nationwide, their accessibility to the rural and urban society, the jump start of the third party insurance in the nation, company's commitment towards improved and effective underwriting Prudence as well as efficient claim processing system put in place have attributed a lot for this success.

"The other major factor for our development is the support of our giant re-insures, they covered us from great risks. Though they are too expensive, they were enabling our customers to get efficient and reliable insurance services. We are working with top or "A" rated reinsureres. As a result, when the undesirable incidence occurs, we reached as soon as possible,"she said.

According to Company Marketing and Customer Service Executive Officer Tegene Masresha to expand its accessibility, the company has opened two additional branches in Addis Ababa. He also noted that to increase underwriting prudence and/or increase the relationship between company and its customers, the company gave various awareness raising trainings for over 6 institutions.

The number of Ethiopian insurance players has reached 15 all being direct insurers. Out of which, seven companies run general or short term insurance and eight composite, general and life insurance business.

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