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Lion Insurance Profit After Tax Up 34.5%

lioninsuranceEthiopia's Lion Insurance Company registered a 13.08 million Ethiopian birr profits after tax, Fortune reported.

The company's earning grew 34.57 percent compared to the previous year. Its earnings per share (EPS) have also reached to 12.25 birr from 7.85 birr.

Lion, which joined the evolving insurance industry as the 10th insurance company back in 2007, with a high initial paid-up capital of 66.4 million Br, nevertheless scored only a marginal increment of 9.3pc in its insurance surplus.

Lion Insurance has also registered 152.14 million birr in its underwritten gross premium, a 19 percent growth, Fortune reported citing the company's audited report released on Saturday, October 26, 2013, during its sixth annual regular and second extraordinary general meeting of shareholders.

The National Bank's no-premium-no-coverage directive banning the sale of insurance policy on credit basis has contributed in this year’s success, Samuel Assefa, Business Development manager of Lion Insurance told Fortune.

“Although it will take some time until more customers have enough cash to pay, that directive has a positive effect on our liquidity,” Samuel said. “The directive will help the industry in the management of the provision of doubtful debts.”

Established in 2007, Lion Insurance Company has a paid-up capital of 32.73 million birr.

Source: Fortune