Nyala Insurance S.C. (NISCO) disclosed that it has recorded a gross profit of birr 194.4 million from its general and long-term insurance operations, an increase of 30.2 per cent compared to the previous fiscal year.
As it has been done in the past consecutive years, the shareholders have also unanimously agreed Birr 100 million to be retained from the net profit in order to increase the paid-up capital of the company to over Birr 700 million.
During his presentation on the company’s annual performance report to the company’s shareholders who attended the 27th General and the 20th Extra Ordinary General Meeting held at Sheraton Addis on 2nd December 2021, Getachew Birbo, the Chairman of the Board of Directors, said that regardless of the frequent challenges and difficulties happened to the nation NISCO has realized outstanding achievements as compared against the preceding fiscal year.
According to the chairman’s report, the underwriting surplus generated from the general insurance businesses has surpassed Birr 160 million, showing a total growth of 30.6 per cent as weighed against the preceding achievements.
Likewise, the chairman underscored that NISCO also registered a 12 per cent growth in its long-term (life and health) insurance business and thereby secured Birr 112.9 million, and added the total asset of the company stood at Birr 2.5 billion, an increase of 12.7 per cent over the previous fiscal year.
On the other hand, the net claims of the company slightly increased from about Birr 175.3 million to Birr 183.1 million, he outlined. Consequently, the loss ratio of the general insurance resulted at 38 per cent, a 10 per cent decrease compared to the previous production period.
The chairman added that the reasons for the remarkable achievements in the premium income were due to the company’s prudent underwriting practices, implementation of business innovations based on the customers’ needs and demands.
Yared Mola, the Chief Executive Officer of Nyala Insurance S.C., on his part underlined that Nyala Insurance is embarking on digital insurance services. He added that the company has availed one fully digitalized service and is dedicatedly working to add more.
Yared emphasized that the success of tomorrow’s insurance business is heavily dependent on how the company is accessible to the digital natives.
Established in 1995 with a paid-up capital of Birr 7 million, NISCO has recently launched the first of its kind insurance product in Ethiopia, named ለ-Mobiሌ (for my mobile). This policy is systematically designed to effectively meet the growing needs and demands of those who want to protect and insure their smartphones apparatuses against all accidental losses, screen damages, breakdowns and thefts, without having any face- to- face transaction.
Nyala Insurance registers 30 per cent Profit Growth
Zemen bank surpasses projections reeling success in all-fronts
Extra ordinary financial service providers, Zemen Bank registered massive success in the past financial year which was above its projection.
The bank which concluded its general assembly a week ago announced that in the 2020/21 financial year it was able to attain success in different aspects of measure.
Most of the performances surpassed expectation which was designed for the financial firm at the beginning of the financial year.
On the stated financial year, the bank had projected to earn 2.54 billion birr in revenue from different banking services, while the actual performance reeled home 2.9 billion birr which was almost 13 percent higher than the projection set at the beginning of the year.
Similarly, the revenue performance has climbed by 34 percent compared with the 2019/20 financial year.
According to the Board of Directors report, the main reason for the expansion of the revenue was the contribution of interest earnings that stood at 1.9 billion birr with 22.2 percent increment compared with the preceding year.
The contribution of international banking and related services was over a billion birr of revenue which increased by 51 percent compared with the projection and 58 percent compared with the 2019/20 performance.
As per the directive of National Bank of Ethiopia (NBE) that ordered banks to surrender their 30 percent of hard currency earnings for NBE, Zemen has contributed USD 127 million. In the year the bank has generated USD 418 million from its international banking service, which is one of the strongest business sides for the bank.
The hard currency generation has increased by USD 35.7 million or 9.3 percent compared with the same period of last year.
According to the annual performance reported at the general assembly, Zemen Bank has secured gross profit of 1.35 billion birr that is higher by 21.3 percent compared with the target and 35 percent compared with the same period of the preceding year.
The profit before tax for the year stood almost at 1.3 billion birr showing increase of 30 and 16 percent from the preceding year and from projection respectively.
According to the annual report, the bank’s total asset stood at 25.2 billion birr that increased by 6.7 billion birr or 36 percent compared with a year ago performance, “the contribution of saving and loan amount is the major reason for the increment.”
The total outstanding loan of the bank that it provided for customers has expanded by over 44 percent and reached at 14 billion birr. Similarly the deposit mobilization has increased by 32 percent and stood at 19 billion birr which has also increased by over 6 percent compared with the projection to attain for the year.
For the year the earnings per share for the year has also stood 46.9 percent that was 46.2 percent a year ago.
As of June 30, 2021 the bank’s paid up capital has reached 2.75 billion birr which was 1.8 billion birr on June 30, 2020.
Lion insurance secures stepwise success
Lion Insurance Company registered another success on its operation in the last financial year.
The insurance company has closed the 2020/21 financial year with over 395 million birr in total premium income up over nine million birr compared with the preceding year that ended on June 30, 2020.
The annual report of Lion Insurance stated that the main reason for such increase is related to the strenuous effort of the work units particularly branches and the support of the management and the board.
It added that in relation to the growth in premium, the net earned premium decreased by 3.7 million birr or 1.2 percent to 306.3 million birr from 310 million birr in the previous year same period.
The production portfolio was topped by the motor class of business as usual by taking 59.1 percent of the gross written premium. The remaining balance of 40.9 percent was accounted for not motor class of business while liability class of business contributed 9.1 percent from non-motor classes followed by pecuniary by 8.3 percent.
During the reported financial year, the claims performance has shown that the amount of gross claims paid was 173 million birr, while net claims uncured was 188 million birr which increased by 1.9 percent compared with the year ended on June 30, 2020.
In the year under review, the company loss ratio was 61 percent which was 59.5 percent a year ago. As usual on the insurance sector in the country the motor loss ratio stood at the top by taking 60.3 percent that increased by 5.3 percent compared with the preceding year.
The technical provision for the year has also increased by over 44 million birr and stood at 475 million birr.
On its operation for the 2020/21 financial year, Lion’s underwriting result showed a corporate surplus of 119 million birr, while it has dropped by about four percent compared with the preceding year.
“The main reason for the decrement of underwriting result compared with the same period of last year was that claims incurred has increased by 3.5 million birr due to high increment in outstanding claims provision by 29.5 million birr for new bonds claims and other class of business,” Lion Insurance elaborated on its report.
It added that on the basis of consolidated revenue account, with the exception of liability and pecuniary classes of businesses all have registered underwriting surplus.
For the year the company has managed to earn 59.1 million birr profit before tax that has increased by almost 11 percent compared with the same period of last year.
The total comprehensive income for the year stood at 58.9 million birr after tax deduction.
As of June 30, 2021 Lion Insurance’s total asset has climbed by over 16 percent and stood at 979 million birr, “this shows that the company is becoming more dependable to its stakeholders in the market.”
The company that was established by 16 million birr paid up capital in the Ethiopian millennium has now reached at 166.2 million birr with 12 percent increment compared with the amount at the end of June 2020.
Nib international bank upgrades its tech
As part of improving its service and operation, Nib international bank announced that it is expanding its core banking technology services, as part of the bank’s five-year strategic plan, as it launched a technology called T 24 R 2020.
The President of the Bank, Genene Ruga, said the bank has already started the technology before other banks in Ethiopia and is part of the pillars of the five-year strategy which is geared towards aggressively working on digital banking. “The technology will greatly help to make the bank’s operations more efficient, modern and convenient,” said the president in a press conference on Wednesday held at the new Headquarters of the Bank.
“e-20, which is part of the core banking technological functions, has been implemented so far,” said Genene, adding, “activities of modernizing the data center is in progress.”
“Furthermore, we have been implementing functions of digitalizing the business processes, human resource development, procurement and fixed asset management tasks,” he said.
Assefa Yishanew, Vice President and Vice President of IT Sector, apologized for the
inconvenience caused by the bank’s transition from old technology to new technology. According to Assefa, banks and other financial institutions will face the same problem during the technology transfer process.
