Nile Insurance Ethiopia reported double digit growth in net profit for the 2011/12 fiscal year. The insurer announced that it earned 33.4 million birr in profits after tax which is 58.2 percent increase as compared to the revenue earned in the previous fiscal year. Earnings per Share also increased by 26.49 percent to reach 425.6 birr, it was reported.
Shareholders of the company discussed the decreasing market share that Nile has in the sector at the General meeting held to announce the financial report at the Addis Ababa, Hilton Hotel. It was particularly noted that insurers that had joined the sector after Nile were currently controlling a larger percentage of the market according to some data cited.
Shareholders also expressed concerns about debt incurred by the insurer with the banks debt growing to 46.5 million birr, an increase of 48 percent from last year, as well as low staff retention trends.The operating expense of the insurance company has also grown by 37.3 percent was also another issue raised by shareholders.
It was noted that the insurance company expects to sell shares in the coming year from January to April to get more capital to fulfill its short term obligations.
Source: Fortune
