Saturday, June 15, 2024

Berhan Insurance registers higher profit


Berhan Insurance concluded the past financial year with lower claim paid, while the gross claims incurred for the same period climbed by 55 percent compared with the preceding year.
The insurer’s annual report indicated for the 2018/19 financial year that the company settled 44.2 million birr claim that was 50.1 million birr a year ago.
At the same time the total claims incurred for the year was 103 million birr that was 66.6 million birr in the 2017/18 financial year, according to the report. It explained that the increment is 36.6 million birr or 55 percent compared with the preceding year.
On the report the company stated that the high claim incurred due to the increase of pecuniary class of business that increased by 390 percent in the 2018/19 financial year compared with the 2017/18 performance period.
Unusually in the industry the pecuniary class claims incurred has seat at the top again the common motor sector that affects most insurers businesses.
According to the report the pecuniary class claim incurred for the year has stood at more than 60 million birr that was 12.3 million birr a year ago. Surprisingly the motor class has reduced 24 percent and stood at 33 million birr claim incurred that was more than 43 million birr.
The report clarified that however the claims increased the reinsurance agreements smashed the risk.
“However the carefully designed reinsurance treaty helps to register the overall improved loss ratio of about 51 percent against 58 percent of the previous year,” the report explained.
Due to such achievement the underwriting result registers a 31 percent increment compared with the previous year performance.
The annual report of Berhan Insurance indicated that during the year the underwriting has stood at about 45 million birr, which was 34.3 million birr in the financial year that was closed June 30 2018.
Due the proper management on the risk and enable to improve the underwriting the company gross profit before tax has also registered a quarter increments compared with the preceding period.
Meanwhile the net income that also included investment income of the company has grown to 68 million birr that was 56 million birr a year ago.
The report of Berhan stated that the company profit before tax stood at 25.5 million birr that was 20.5 million birr a year ago.
The profit after tax has also climbed by over four million birr and reached at 24.5 million birr that was 20.5 million birr in the 2017/18 financial year.
That the same time the earing per share has also stood at 24 percent, while it has been 22 percent a year ago.
For the year the gross written premium income has climbed by 17 percent compared with the 2017/18 budget year and stood at 122 million birr that was 104.3 million birr a year ago.
As the sector usual dominance the motor class of business has produced the lion share by close to 71 million birr that was over 61 million birr a year earlier. From the total written premium the motor class produced 58 percent for the year and pecuniary class of business followed by 20 million birr or 16 percent from the total share.
The insurance company asset has climbed to 410 million birr that grew by 94 million birr or 30 percent.
As of the end of the last financial year that is June 30, 2019 Berhan Insurance has 15 branches and two contact offices.

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