Nyala Insurance S.C. (NISCO) recorded record profits among private insurers by amassing 769.4 million birr last fiscal year. This was a 76 percent increase in profits compared with the preceding year.
From the total profits 707.7 million came from general business and life insurance business accounted for 68.6 million birr.
Kemal Mohammed, NISCO’s board chair told the press last Thursday that the company’s work ethic is behind the profit increase.
“There is no secret behind our success, we deeply go into our work, attract new customers and widen our space which allows us to maintain good results.’’
He further indicated that during the budget year the company’s total income grew by 498.2 million birr up from 430.5 million birr, an increase of 16 percent. The company’s total assets stood at 1.9 billion birr, which means an increase of 32 percent over last year or 1.4 billion birr. Similarly, the company’s paid up capital at the end of the year reached 340.5 million birr. This shows a significant increase of 32 percent and 51 percent from last year and the strategic target of 258.4 million birr and 225 million birr respectively, he said.
Kemal added that lack of human resources and unfair competition among insurance companies is still a challenge in the sector.
Yared Mola, Chief Executive officer of NISCO added that even though NISCO achieved record results the insurance industry in Ethiopia still has a long way to go.
“Insurance penetration (total premiums as a percentage of GDP) is 0.4 in Ethiopia while it is 2.6 in Kenya; premium per capita is 2.9 USD in Ethiopia while it has reached 40 USD in Kenya,‘’ he said.
He cited absence of a strategic alliance among industry players and tightened regulations as critical challenges faced by the industry.
Nyala Insurance Share Company (NISCO) was founded in July 1995 following the liberalization of the insurance business in 1994. Currently, NISCO guarantees protection with care to its customers through three pronged services – General, Life and Micro-insurance solutions with a network of 43 service outlets (28 Service Centers and 15 Contact Offices) distributed all over the country.