Africa Insurance, Ethiopia passed the decision to raise its capital by two fold at the General Assembly it held last week. The decision means that insurer will raise its paid up capital to 180 million birr from the 60 million birr it currently has.
Africa Insurance has earned 27 million birr profit before tax, an increase of 18 percent growth from the last year according to the annual report released by the company at the time. The net profit of the company for the last fiscal year was 23.6 million birr, which is 4.6 percent higher than the previous year.
The insurance company registered 357 million birr of a gross written premium, with 344 million birr earned from general insurance premium and 13 million from the long term insurance sector.It is to be remembered that this share was just 257 million birr last, which means that the company has registered a 39 percent growth. The total asset of the insurance company is 502 million birr, 17 percent higher than the last year 430 million birr.
The main source of increased revenue in the 2011/12 fiscal year was reported to be coverage sold as part of the third party compulsory motor insurance. Third party motor insurance earned 36 million birr making up 11 percent of the total performance of the insurance company.
Source: Capital
