By our staff reporter
Zemen Insurance has experienced a remarkable growth in the previous fiscal year, marking a significant milestone for the insurance sector. As the newest player in the industry, the company reported a substantial increase in profit before taxes, soaring from around 2.5 million birr to 46 million birr—an impressive seventeen-fold rise. Moreover, the gross written premium surged by nearly 300 percent, reaching 325.6 million birr compared to the previous year’s 78.3 million birr.
Melaku Ezezew, the board chair of Zemen Insurance, highlighted that the company’s premium production growth rate surpasses the industry average of 39 percent. However, the fiscal year ending on June 30, 2023, witnessed a significant rise in net claims incurred, totaling 68.3 million birr compared to just over 2.1 million birr previously. This translates to a more than thirty-fold increase in claims incurred compared to the previous financial year. Despite this notable expansion in claims, the company’s tremendous growth in net earned premiums was made possible by the substantial increase in written premiums.
Zemen Insurance also reported a substantial boost in net premium earnings, amounting to 126 million birr, in contrast to the previous year’s 2.9 million birr. The company’s annual report highlighted promising investment and other income-earning outcomes, with non-insurance business earnings reaching 29.1 million birr, up from 11.4 million birr in the preceding year. While the company’s earnings and operating margins experienced significant expansion throughout the year, its expenditure growth rate remained moderate.
According to the company’s annual report, expenses for the year totaled 24.6 million birr, compared to 10 million birr in the previous year. Zemen Insurance’s total assets as of June 30, 2023, reached 526 million birr, a growth of approximately 200 percent compared to the 2021/22 fiscal year’s 176 million birr. This represents a 110 percent increase from the company’s initial operating year, which ended in June 2021, with assets totaling 250 million birr.
Additionally, the company’s earnings per share climbed by 33 percent from 1.8 percent in the previous year. Founded by 898 shareholders, Zemen Insurance commenced operations in June 2020, displaying promising growth within a relatively short period.
