Nile Insurance S.C. reported Birr 560.5 million in pre tax profit for the 2024/25 fiscal year, a 16.6 percent increase from Birr 480.6 million the previous year, according to its annual report.

The company said performance was supported by its general insurance business and higher investment income, while inflation, price competition, and rising operating costs continued to weigh on margins. Earnings per share declined 5 percent to Birr 417 from Birr 439, which the insurer linked mainly to higher administrative and operational expenses.

Total insurance revenue was largely unchanged at  Birr 1.15 billion. The life insurance segment posted weaker results, with revenue falling to Birr 74.4 million birr from Birr 83.6 million. The segment’s result moved from an Birr 8.9 million profit to a Birr 14.3 million loss, which the report attributed to service costs increasing faster than premiums.

The company said it relied more on investment and wealth management income to offset market pressure. Net profit from general insurance rose 72.2 percent to Birr 408.9 million, alongside a 46.7 percent increase in investment income to Birr 333.7 million. Total assets increased 41 percent to Birr 5.8 billion, while paid-up capital rose 25 percent to Birr 1.25 billion under a plan to strengthen the capital base.

After reserves and deductions, net profit was Birr 475 million. The board proposed Birr 372 million in dividends. Nile also reported growth in its Takaful business, alongside higher expenses. Looking ahead, the company said it will focus on digitalization, cost management, and pricing discipline amid ongoing competitive and macroeconomic constraints.

Source: Capital Ethiopia Newspaper