Nile Insurance, one of the long established insurers since the sector opened for private operators, has registered massive success in the past financial year with profits bulging by 43 percent.
In the 2021/22 financial year that closed June 30, the company registered a positive performance in all aspects primarily on investment income while expenses like paid claims continued on a regular rise.
The general insurance premiums in the reporting period also expanded by 33 percent reaching 715 million birr up from 539 million birr in the preceding year.
Gross claims paid in account of the general insurance increased by 23 percent from 215.6 million birr of June 2021 to 265.7 million birr in the past financial year.
For the fiscal year under review, after reinsurance recoveries, the net claims paid amount stood at 244.5 million birr.
Claims incurred in the year have jumped by 46 percent from 199 million birr in the 2020/21 financial year to 291 million birr in 2021/22.
According to the annual report the loss ratio under general insurance for the period under review was 58.3 percent from almost 52 percent in the preceding year.

“The rise in spare parts costs of some new brand vehicles, repeated theft cases of vehicles, high frequency of claims for heavy trucks together with the significant rise in cabin change costs and others contributed for the rise in claims,” the report explained.
In the year, the underwriting surplus increased by 15 percent compared with the previous year and stood at 222.6 million birr.
In the long term aka life insurance business, the gross written premium rose by 15 percent towering at almost 67 million birr. The amount in the sub insurance business for the year was noted to be one of the biggest in the sector.
The company investment income grew by 59.2 percent to reach 146.3 million birr from 92 million birr a year earlier.
“Dividend obtained from the Bank of Abyssinia and Etho Re substantially rose by 132 percent from 30 million birr in 2020/21 to 69.3 million birr to the reported year,” the annual report explained how the investment income expanded dramatically.
In the reporting year, Nile amassed 227 million birr in profit before tax which is an increment of 43 percent compared with the performance a year ago. In the 2020/21 financial year, the company profit before tax was 158 million birr.
In similar trend, the profit after tax reached 197.5 million birr from 134.2 million birr of a year ago.
For the year, the earnings per share (EPS) increased by 22 percent and stood at 33.9 percent for par value of 1,000 birr which makes it one of the biggest in the sector.
The total asset of the company has increased by 30 percent to sit at 2.6 billion birr, while it’s paid up capital has increased by 29 percent capping at 646.4 million birr from 500 million birr a year ago.