Bunna Insurance 2020/21 performance surpasses its projection in all aspects of insurance activities.
The insurance company that conducted its general assembly on Saturday November 20 stated that on the reported year its activity on written premium, underwriting surplus, profit and other activities has surpassed the projection set earlier in the year.
According to Bunna Insurance’s annual report, during the financial year that ended on June 30, 2021 it has been able to collect 335 million birr in premium. The amount of premium written for the year has climbed by 22 percent compared with the projection that was 274 million birr. Similarly, the amount has seen a growth of 34 percent compared with the same period of 2019/20.
“While looking at our 12 months performance in terms of classes of businesses, over target achievement is registered on political violence and terrorism (PVT), pecuniary, fire, liability and motor classes of businesses by performing 295 percent, 32 percent, 27 percent, 26 percent and 17 percent over the target, respectively,” the annual report elaborates.
The marine class of business stood over 3 percent of the projection, while the PVT that was recently introduced in the Ethiopian insurance business has achieved almost three folds of the expectation.
Commonly on the insurance business in Ethiopia, motor stood at the top in terms of annual production by taking 55.5 percent of the total premium followed by liability, PVT and pecuniary that took 12.2 percent, 9.8 percent and 9.7 percent respectively.
In the year, the insurance company has settled 131.6 million birr net claim, which has shrunk by 6.1 percent from the expectation to be paid for the year. The company was projected that it shall pay over 140 million birr in the year. The annual performance report shows that unusually the net claim paid for motor business is lower than the preceding year performance.
Meanwhile the outstanding claims of the company stood at 65.7 million birr, which is 13.7 percent over the planned 57.8 million birr.
With its massive increment on its operation for the years compared with the target, Bunna Insurance’s underwriting surplus stood over 52 million birr which received a boost of 49 percent compared with the target of 35 million birr.
During the financial year 38 million birr worth of income has been secured from other source of incomes. The income collected from other sources, which are mainly interest income and dividend income, has registered an increment of 10 percent compared with the performance ended on June 30, 2020.
For the year, the insurance company has earned 59 percent higher profit than the target it set. The annual report indicated that in the year Bunna Insurance secured 36.2 million birr gross profit, while the target was 23 million birr.
The profit for the year has also risen significantly compared with the preceding year that was 20 million birr, which is 81 percent lower than the 2020/21 performance.
“This over target profit is registered mainly because of over target underwriting result achievement and measures taken to control expenses and claims management,” the report said.
The profit after tax for the year stood at 34.6 million birr, while the total comprehensive income for the year climbed to 35.2 million birr from 23.3 million birr a year ago.
Based on the marvelous achievement for the year the company earnings per share have increased to 19.2 percent from 13.3 percent of the 2019/20 performance.
The company’s total asset as of June 30 is 768 million birr; while the paid up capital has increased to 174 million birr from 145 million birr of a year ago.
For the year its administrational and general cost stood at 81.5 million birr.