Africa Insurance Company SC, reported 30.7 million birr in profits before tax for the 2012/13 fiscal year, Capital reported.

The company's pre-tax profits has showed a 14 percent increase from the 26.9 million birr in profits a year earlier. Africa Insurance has paid 16.8 million birr in dividend to its shareholders, based on the profit registered during 2011/12 (30 percent of weighted average capital of 56 million birr), according to Capital.

The company also reported 408 birr earnings per shares for the fiscal year.

According to Kiros Jiranie, CEO of African Insurance, even though the insurance company’s profit was less than projected, the company’s capital has increased significantly.

The gross premium of 310.2 million birr for general insurance declined compared to the previous year and falls 16 percent less than the target the targeted 367.5 million birr.

“We have invested our interest income in other businesses. Therefore, our profit declined from the preceding year. But when we look at the long term business of the insurance company, the profit will increase significantly when we start to see returns from our investment,” the CEO said.

Africa Insurance earned 29.2 million income from investment. Dividend income from investments in shares of Wegagen Bank and Selam Bus Line constituted 41 percent (11.9 million birr), while 36 percent (10.4 million birr) and 23 percent (6.9 million birr) came from rental income and interest on bank deposits respectively. The total assets of the insurance firm reached 567.6 million birr, up from 560 million birr a year ago.

Africa Insurance CEO told Capital that, the paid up capital of the company has reached 81 million birr, while the subscribed capital also increased to 180 million birr.

Source: Capital