The National Insurance Company of Ethiopia registered 25.2 million in profit before taxes for the previous financial year. The profits recorded by the insurer have increased four times over in the last twenty years according to sources.
The company’s before tax returns had been no more than 5 million birr in the past years according to Tewdros Bogale, Deputy General Manager of Corporate Affairs with the NICE.
The insurance company’s net profit after taxes was nearly 18 million birr enabling it distribute 1096 birr per share to its shareholders.
The third party vehicular insurance management strategy has registered significant returns to the NICE noted Tewdros.The motor insurance niche contributed an estimated 66.5% of the gross revenue earned by the bank according to the financial report. The report noted that the overall ratio of net incurred claims versus net written premium stood at 42.6% as opposed to 60.5% in the previous year.
The insurer also attributes its success to aggressive marketing and promotion as well as efforts taken to reorganize operations for effective customer services.
The report from the company also notes that the NICE has taken steps to enhance its mechanisms for risk selection and to revise its premium rates on the basis of the current conditions.
Source: Capital
