The largest insurance firm, Ethiopian Insurance Company (EIC), grossed a record-high profit in the past fiscal year, despite all the noise surrounding the infant insurance industry of the country.
The profits of the firm have surged more than 25.2pc on the back of last year’s hike and a better return on investments.
Gross profit for the past fiscal year rose to almost 700 million Br whereas annual investment yield reached one billion Birr.
Sentayehu Woldemichael (PhD) (Left), director of Public Financial Institutions Supervision Agency (PFISA), along with Netsanet Lemmesa, CEO of EIC (Middle), and Degu Lakew, board member of EIC, attended the 31st annual meeting of EIC held at the Intercontinental Hotel on August 25, 2017. During the meeting, the management of the Insurance and its watchdogs seemed gratified with the latest performance as the firm bucked the shrinking insurance industry’s trend by registering a sequential growth.
The four-decade old firm recorded a remarkable jump in profit in a time where most insurers are recording profit declines mainly due to ill advised pricing strategies, where insurers tend to compete by cutting prices rather than introducing new products and services. As of June 2016, the aggregate profit reported from the insurance industry throughout the year was a meagre one billion Birr for 16 insurance firms – four times lower compared to that of neighbouring country, Kenya.
Source : Fortune