United Insurance Company S.C. secured 62.7 Million Birr net profit in the last fiscal year. This figure is slightly higher than what the company managed to earn in the 2012/2013 fiscal year, 60 Million Birr.

United’s audited report reveals the company’s gross profit for the period was 77.6 Million Birr which granted it a rise in its market share from, 5.5 percent to 5.9 percent. The report attributed the achievement to operational, professional and commercial success. It further praised the performance after looking into the two indicators of operating performance, premium and loss ratio.

Collecting a total of 274.3 Million Birr, the Insurer registered a 10.2 percent increase with regard to its premium performance. This is better than the industry average 4.2 percent.

In addition to this, the report stipulated the performance in the premium sector only encountered a 52.3 percent loss which once again is better than the industry average 65 percent. Nonetheless, the document did not deny the premium and loss/claim departments’ performance is not equal underwriting surplus for the company. The Reporter commented on the matter saying, “In fact, in spite of strong growth recorded in the previous year in premium and loss ration, the surplus in underwriting was found to be 0.7 percent higher than the previous year which, according to the report, reflected high number of premiums written towards last month of the fiscal year”.

United also showed a good performance in its business retention ration, 81 percent. As per the report, during the last five years the overall business retention ration has been 80 percent and above.

The Insurer’s overall revenue grew from 102 Million Birr to 110.3 Million Birr. On the other hand, operating expenses are also showing increase in 36 percent for which amortization, depreciation and financial expenses are being blamed for.

United Insurance Company S.C. was established some 20 years ago among 80 shareholders who made up a paid up capital of 8 Million Birr.

Source: The Reporter