Significant earning per share and profit registered
Berhan Insurance registered significant earnings per share and profit for the 2019/20 financial year with higher premium.
The company that issued its annual performance in the general assembly held two weeks ago indicated that its operation for the past financial year was successful in different aspects of operation in the industry.
Tewodros Meheret, Board of Directors Chairperson, said that in spite of the challenges posed by the coronavirus and political instability the company has performed well and registered profit.
The company’s gross written premium income stood close to 140 million birr with 15 percent increment compared with the preceding year.
In the 2018/19 financial year the gross written premium was 122 million birr.
The motor class of business written premium has took the top by 57 percent share or 80 million birr that was 71 million birr a year ago as the usual trend in the insurance sector and flowed by pecuniary with 15 percent share.
In the 2019/20 financial year the gross claim paid has expanded to 71 million birr from 44 million birr of a year ago. The ration has also increased to 51 percent from 36 percent of the preceding year.
The annual report of Berhan Insurance indicated that the gross incurred claim, which includes movement in outstanding claims provision, amounted to 64 million birr in 2019/20 as against 66.6 million birr in 2018/19 meaning that the gross loss incurred has dropped from the preceding year.
The gross earned premium has increased to 133 million birr from 113.4 million birr of 2018/19 financial year.
The underwriting surplus has surpassed 61.4 million birr during the reported period with 37 percent growth from the preceding year that was 45 million birr. The underwriting surplus on the motor sector and pecuniary stood at 41 and 25 percent respectively.
The company profit for the year has grown by over 10 million birr and stood at close to 36 million birr before tax. A year ago the company profit before tax was 25.5 million birr.
In the reported period the company has amassed 34 million birr net profit after tax that was 24.4 million birr a year ago.
The earnings per share have also expanded to 29 percent from 24 percent of the 2018/19 financial year. The growing of earnings per share shall be registered as one of the few companies who attained growth in the year.
Berhan’s paid up capital as of June 30, 2020 has reached at 117.7 million birr that was 100 million birr a year ago, while the total equity capital amounted 159 million.
Its assets has also climbed by over 30 million birr and reached at 440 million birr.