Zemen Insurance Company, the latest company to enter the Ethiopian insurance sector has reported that it earned a profit of 18.3 million birr. In it’s 6 months of operation, the company only managed to collect an income of 161,840 birr while it’s profit was 18.3 million birr. Out of the 161,840 birr the company collected, 138,518 was for motor insurance while 23,322 is for marine insurance related activities.
The reason the company managed to profit more than the income it collected is because of interest payment that was paid for the company on the money it was collecting while selling shares. 18.3 million birr profit for a company that has operated for less than a year is very impressive. It is common for insurance companies tend to report losses on their first and second year of operation.
The company managed to collect 18.83 and 1.05 million birr interest payment from various types of fixed time deposit accounts. Zemen Insurance also collected 275,439 birr from government bonds. The company spent 5.2 million birr to start it’s operations.
The company started it’s operation with a paid up capital of 79.8 million birr and total capital of 112 million birr. It’s paid up capital at the end of the budget year now stands at 98.7 million birr while it’s total capital is now 116.6 million birr.
The Earning per share (EPS) of the company for the current year is 20%.