Oromia Insurance Company (OIC), one of the insurers that have grown to prominence since the market reopened for the private sector, attracts massive results as profits hit new ceiling.
The company which disclosed its annual performance a couple of weeks back indicated that for the year that started July 1, 2021 and closed June 30, 2022, it has managed to amass 38 percent higher gross written premium for general insurance business when compared to the year that closed in June 30, 2021.
Similarly the life insurance business premium collection has expanded by 45 percent.
The annual report indicated that in the general insurance business, OIC registered 925.3 million birr in premium from general insurance business up from 671.7 million birr a year ago.
In regards to life insurance, the gross written premium expanded to 19.4 million birr up from 13.3 million birr of the previous year.
Despite, the company registering a big success in the premium collection both the general and life insurance businesses were below the target that the company had set for the year.
In the reporting year, the net claim incurred was 312.6 million birr which is an almost quarter percent increase when compared to the 2020/21 financial year. However the claim incurred in the year was18 percent lesser than the projection that the company set for the period.
Similarly, the claims paid for the year shot up by 31 percent compared with the preceding year to sit at 251.5 million birr.
For the year, the company secured a net income of 457.3 million birr a notch higher than the previous year’s achievement of 304 million birr.
The company’s asset has also been boosted by more than a third. According to the annual report, OIC’s asset now stands at 2.55 billion birr up from 1.9 billion birr recorded a year prior.
The report indicated that the company’s total investment during the reported year had expanded to almost 1.4 billion birr with an increment of 41 percent of the preceding year.
Of the total investment, the fixed time deposit took the lion’s share. The report showed that the insurer’s fixed time deposit investment accounted for 786 million birr while the equity investment took 289 million birr.
The company that is building its headquarters aligned the 275.8 million birr of the investment for its construction project.
One of the big moves the company attained in the year was the expansion of its paid up capital. For the year, OIC’s paid up capital stood at 680 million birr with increments of 36 percent compared to the period that closed in June 2021.
In terms of profitability, the company concluded the year with extraordinary achievements.
The annual report indicated that the profit before tax for the year stood at 239.8 million birr which was a 70 percent increase from last year and 183 percent of the target set at the beginning of the year.
A year ago, the insurer had secured almost 140.9 million birr profit before tax.
In the 2021/22 financial year, the company amassed 198.5 million birr profit after tax, which is a 56 percent boost from the 127 million birr reeled in a year ago.
In the year, the earning per share stood at 35 percent.