Bunna Insurance, one of the private insurance companies that started it’s operation 10 years ago reported that it has earned 45.8 million birr in profit before tax for the 2022/2021 G.C (2014 E.C) budget year, which is 24.36% higher than the previous year.
In it’s annual general assembly meeting held recently, the company’s shareholders agreed to raise the insurance company’s capital from 200 million birr to 1 billion birr. One of the reasons for raising the capital are the recent rules set out by the National Bank of Ethiopia where Insurance companies are required to have a minimum capital of 500 million birr.
Regarding the sale of new shares, it was agreed that existing shareholders will be given priority to increase their equity in the company. If existing shareholders can’t raise their equity in the insurance company by the set deadline, the general assembly agreed that shares will be sold to new people.
The company reported that it was able to collect 480.2 million birr gross premium income where 468.7 million birr is from non-life insurance business while the remaining 11.36 million birr is from life insurance related business. These figures are 40% and 279% higher than the previous year.
Bunna Insurance paid 174.6 million birr in claims while the outstanding claims reached 89.20 million birr. The company’s total assets reached 1.08 billion birr which showed an increase of 41.12%. Bunna Insurance currently has 209 employees.