Hibret Insurance stated that it recorded a profit in the billions of birr during the 2024/25 fiscal year, according to a report presented at the company’s annual shareholders’ meeting.

The insurer reported a pre-tax profit of Birr 1 billion, representing a 79 percent increase compared to the 2023/24 fiscal year. Net profit after tax reached Birr 843 million, also showing a 79 percent year-on-year increase, the report noted.

Earnings per share increased by 47.78 percent to 68.55 percent, reflecting a comparative growth of 43.5 percent.

Premium collection across all insurance segments amounted to Birr 2.75 billion, up 40.31 percent from the previous fiscal year. Of this total, Birr 2.57 billion was generated from non-life insurance operations, while life insurance contributed Birr 141 million and takaful insurance Birr 31.9 million.

Hibret Insurance also reported net investment income of Birr 544 million. Insurance service revenue for the year reached Birr 765 million, a 77.63 percent increase compared to the 2023/24 fiscal year.

According to the report, the company’s paid-up capital stands at Birr 1.34 billion, and its total assets exceed Birr 6 billion.

The company indicated that its performance during the year was achieved amid several challenges, including security concerns, inflationary pressures, reduced purchasing power of the birr, sluggish investment activity, cash shortages, and limited access to bank financing.

It also cited increasing competition within the insurance sector, fixed premium rates applied to motor insurance, and instances of unethical business practices as additional challenges faced during the reporting period.

Despite these constraints, Hibret Insurance said it completed the 2024/25 fiscal year with improved financial results and is moving into the 2025/26 fiscal year on relatively stable footing.

Source: Sheger FM 102.1