Lion Insurance continues to exhibit impressive financial indicators, reflecting its robust position in the industry. With a paid-up capital of Birr 244,071,787.71 and total assets amounting to Birr 1.7 billion, the company showcases its financial stability and capability to meet obligations effectively. Additionally, the total equity stands at Birr 114,630,000.00, demonstrating a solid foundation for sustained growth.
In terms of general insurance, Lion Insurance has achieved a remarkable Gross Written Premium (GWP) of ETB 857,359,248.29 as of June 2023. This figure highlights the company’s strong market presence and customer trust in its offerings. Furthermore, the company has generated a gross profit of Birr 75.6 million during the same period, indicating its ability to effectively manage operations and drive profitability.
Notably, Lion Insurance has successfully reached a subscribed capital of Birr 300 million, showcasing the confidence of investors in its long-term growth prospects. This achievement further strengthens the company’s financial position and enables it to pursue strategic initiatives and expand its portfolio of services.
Through its sound financial performance and consistent capital growth, Lion Insurance demonstrates its commitment to delivering value to stakeholders while maintaining a strong foothold in the insurance industry.
Abreham Mersha is CEO of Lion Insurance. He started his career in Insurance as the 4th pre-service trainee with Ethiopian Insurance Corporation in 1989. With over 30 years of experience in the industry he worked in different insurance firms. He talked to Capital about his company’s future plan. Excerpts;
Capital: How has Lion Insurance adapted to the changing landscape of the insurance industry in recent years?
Abreham Mersha: The insurance industry has undergone significant transformations globally due to digitalization and technological advancements. Lion Insurance recognizes this trend and understands that our market in Ethiopia will also experience a shift towards online insurance purchases, customized policies, and increased demand for enhanced services. We have already taken steps to support our operations with a Core Insurance system for policy processing and a portal for claim management. However, we acknowledge the need to further modernize and meet the evolving needs of the insurance industry.
Capital: What differentiates Lion Insurance from its competitors in terms of products and services?
Abreham Mersha: While most insurance companies in the industry offer standardized products, with little innovation or differentiation, Lion Insurance stands out in terms of its range of products and services. As a composite insurer, we provide both life and general insurance policies. Our emphasis on fast and efficient service, supported by IT systems, sets us apart. Customers can easily notify and track their claims through our online portal. We also have decentralized claim settlement services and use our own towing cranes to expedite the process. We prioritize customer satisfaction by recognizing the importance of timely responses and efficient claim settlements.
Capital: How does Lion Insurance prioritize customer satisfaction and ensure a positive customer experience?
Abreham Mersha: As a service-oriented industry, customer satisfaction is paramount for us. We have embedded a customer-centric approach in our business to provide a positive experience and foster long-term relationships. We value our customers by listening to their needs and accommodating their requests as much as possible. We provide honest and accurate information, honor our promises, and ensure timely claim payments. We actively seek customer feedback and conduct consultative meetings to strengthen our partnership. Additionally, we have implemented a customer recognition and loyalty program.
Capital: How does Lion Insurance incorporate technology and innovation into its operations and offerings?
Abreham Mersha: Lion Insurance is fully automated in its operations. We utilize IT systems to support underwriting and claims services, issuing system-generated policies and facilitating renewal reminders. Our online portal enables customers to lodge claims and track their status. We also have plans to launch online insurance services in the near future, further embracing technology and innovation.
Capital: How has Lion Insurance embraced sustainability and corporate social responsibility?
Abreham Mersha: Lion Insurance is committed to conducting business with integrity and professionalism. We prioritize the sustainability of our growth and profitability to benefit all stakeholders. In addition to supporting the national economy through insurance operations and diversified portfolio investments, we contribute to sustainability and corporate social responsibility by purchasing government bonds and making financial contributions to national projects and humanitarian activities when needed.
Capital: What measures does Lion Insurance take to manage risks and ensure financial stability?
Abreham Mersha: We have implemented a robust risk management practice in compliance with regulatory requirements. This includes defining potential risk exposures, setting risk appetite and tolerance limits, and regularly assessing risk factors. We stay updated on legal and regulatory developments and provide risk management advice and training to corporate customers. Prudent underwriting and claims management practices, along with sufficient reinsurance cover, are also key aspects of our risk management approach. We carefully manage our financial resources and investment portfolio to reduce concentration risk and monitor our operational and financial performance through monthly financial reports.
We conduct impact assessment and evaluation on new legal and regulatory developments to mitigate the possible impact on our operational and financial position. We provide risk management advice & trainings to our corporate customers. Exercising prudent underwriting and claims management practices and arrangement of sufficient reinsurance cover in support of our operation are also among the major risk management activities we use to ensure financial stability of our company.
We make cash flow forecast and manage our financial resources and investment portfolio in a manner that reduces concentration risk. On top of these we prepare interim financial report on a monthly basis to monitor the company’s operational & financial performance on an ongoing basis. I think this is also one differentiation point.
Capital: Can you provide an overview of Lion Insurance’s growth strategy and expansion plans?
Abreham Mersha: Our vision is to become one of the leading private insurers in Ethiopia by 2031. Our growth strategy includes increasing our Gross Written Premium Income (GWPI) and market share through product diversification and branch expansion. We aim to increase capital and expand our range of equity investments. We have already started offering life insurance and are working towards introducing an alternative insurance solution called Takaful. Additionally, we are focused on developing new products for the low-income segment to support financial inclusion.
The fact that Lion Insurance started life business is one achievement registered in line with the company’s growth strategy. Besides, currently we are working to start an alternative insurance solution called Takaful. Furthermore, focus shall be given to engage on the development of other new products for low income society in support of the financial inclusion.
Capital: How does Lion Insurance nurture and develop its talent pool and approach employee engagement and satisfaction?
Abreham Mersha: We believe that it is our responsibility as leaders to ensure employee engagement and satisfaction. We create an empowering and motivating environment where employees are encouraged to grow. We provide training opportunities for their professional development, both locally and internationally. We recognize and reward our employees based on their performance, offering accelerated growth opportunities. We have also established a succession plan to ensure sustainability.
Capital: In your opinion, what are the major challenges and opportunities facing the insurance industry today, and how is Lion Insurance positioned to address them?
Abreham Mersha: The current operating environment presents more challenges than opportunities. Geopolitical unpredictability, climate change, economic conditions, stringent reinsurance requirements, and a shortage of skilled manpower are among the challenges we face. However, there are also untapped market potentials, the need for alternative insurance solutions, technological advancements, and the establishment of the Capital Market, which present opportunities. Lion Insurance is continuously strengthening its professional, financial, and technological capabilities to navigate these challenges and seize the opportunities that arise.
On the other hand; existence of untapped market potential coupled with the need for alternative insurance solutions such as Takaful, expansion of the Finance sector, Potential of the industry zone to attract foreign direct investment, Technological advancement and the coming into picture of Fintech companies and payment systems, establishment of the Capital Market, existence of one National Reinsurance Company & two local representative offices of foreign reinsurers, and focus for financial inclusion are opportunities for the insurance industry.
Cognizant of the fact that only those better prepared can afford to overcome the challenges and grab opportunities; we are working on continuously strengthening our Professional, financial and technological capabilities to remain relevant in the dynamic business environment.
