Oromia Insurance Company registered 11.7 million birr in net profit in the last financial year. The insurer recorded a 447% increase from the 2.1 million birr it had earned in the previous financial year.

The profits earned during the last fiscal year were a new record for the insurance company just three years old. The increased revenue earned by the company is due to an enhanced system of risk selection and a decrease in credit balances due to an extensively implemented collection strategy according to the annual report presented by the company.

The increase in the revenue of the company was also supported by an effectively applied cost saving and control mechanism, Investment of temporary idle cash in fixed-time deposits, and small dividends generated from equity investment noted the OIC.

The total asset of the company also showed an increase from 96.3 million birr to 185.75 million birr at the end of the last financial year.

Vehicular insurance is still continuing to grow in the portfolio of the company taking up a 69% share of its gross written premium followed by marine and pecuniary insurance. The notable increase in vehicular insurance is mainly due to the compulsory third party motor insurance law enacted last year.

Source: Capital