Nile Insurance Company reports an increase in profits

Nile Insurance CEO Negus Anteneh and other board members at the 26th annual general shareholders’ meeting

Nile Insurance Company S.C., has reported that its profits have seen modest growth during the previous fiscal year. The firm reported that profits grew by one percent compared to the year before last to 112.1 million ETB.

Officials within the firm noted, however, that this is a decrease in growth rates. The firms profits had grown by 74 percent over the year preceding the fiscal year that ended in July 2020. Given the pandemic and other constraining situations in Ethiopia, the firm remains optimistic about its future.

Two years ago the firm’s profit and earnings per share (EPS) had plunged by more than half due to massive expense claims. During that time the EPS of the firm fell from 327 to 269 ETB due to massive capital acquisition that saturated the market.

According to Ephrem Ketema, a Nile Insurance shareholder for the past decade current growth trends are a product of good management and a board that is administratively capable.

Mekdes Aklilu, a member of the firm’s board of directors, and CEO Nigus Anteneh echo the same sentiments as Ephrem and cite Nile Insurance’s ranking as the 4th insurance firm in Ethiopia in terms of life insurance and 6th in terms of non-life insurance business lines, despite the unique challenges of the year, as indicators of the potential the firm possesses.

An increase in gross written premium by 13 percent and an 80 percent retention of that amount are said to have offset the modest 5 percent increase in paid claims and led to the growth that is being reported. The firm also received commissions amounting to more than 35 million ETB which is a 27 percent increase.

Addis Fortune

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