United Insurance Company (UNIC Ethiopia) earning per share (EPS) spikes as the firm looks forward to double its capital. UNIC one of the pioneer insurers in its 27th general assembly and 12th extraordinary meeting has decided to postpone the proposal of its capital doubling to a billion birr for another period.
On the annual assembly that was held on Thursday November 11 at Sheraton Addis, UNIC Ethiopia disclosed that in the 2020/21 financial year that ended on June 30 2021, it had registered a remarkable success in every aspect of its operation and investment that is also recognized by shareholders.
According to the annual report of the insurer in the stated period the EPS has increased by 5.5 percent compared with the preceding year. Experts stated that this condition is uncommon when a company engages on capital increment.
“Even though the paid up capital of the company grew by about 8.5 percent to reach 473.4 million birr in the year, the EPS showed a modest growth,” UNIC Ethiopia Board of Directors report stated.
As per the report the EPS grew from 29.9 percent of the preceding year that ended on June 30, 2020 to 31.5 percent in the June 2021 ended financial year.
For the year, the total gross written premium, which combined the life and general businesses, expanded to 731.4 million birr from 597.4 million birr a year ago.
Similar to prior years of the insurance business in Ethiopia, the general or non life insurance gross written premium took the lion’s share by generating 660 million birr and the remaining 71.3 million birr fell to the contribution of the life sector of insurance business.
The general insurance premium earnings expanded by 20 percent compared with the preceding year, while all classes of business recorded growth except accident/ health class.
From the non life premium earnings, motor class of business as usual took the huge chunk of the pie with 59 percent followed by fire and general accident classes.
With regards to the premium for the life sector, the company has registered massive achievements. The life insurance premium has risen by 56 percent and the loss ratio was 44 percent which is far below from the industry average of 58 percent.
During the reporting year, the net claim has shown an increment of 20 percent and reached 288 million birr which was 241 million a year ago.
“As a result the corporate loss ratio increased to about 60 percent as compared to 55 percent in 2019/20 financial year,” the report stated.
For the year the combined underwriting profit from life and non life business grew to 212.3 million birr in the stated period from 210 million birr a year ago.
The report claimed that the increase in claims ratio is due to the ever-escalating cost of goods and services in general and the price hike of spare parts in particular. Moreover, the continual unfair price war in the sector has contributed to the same.
For the year UNIC Ethiopia’s profit before tax increased by 15 percent and was 170 million birr, while the profit after tax has expanded by 17 percent to reach 145 million birr.
Regarding investment, UNIC Ethiopia has four buildings including one in Bahir Dar and shares in different companies. Under the reporting year, the company has earned 40.3 million birr from rent of its buildings that grew by 17.5 percent compared with the preceding year.
“Income from dividend has shown a significant growth of about 29 percent and reached 29 million birr from 22.6 million birr a year ago,” the report explained.
The dividend earnings were secured from United Bank and Ethiopian Reinsurance Company, while from its investment at Habesha Cement the company is yet to secure its profits to which shareholders recommended at the general assembly the leadership of the firm to investigate the situation at the cement factory.
Currently UNIC Ethiopia has a total asset of 1.8 billion birr.
In its extra ordinary meeting held on the same day, the Board of Directors proposed that the company capital to grow to one billion birr from the current 500 million birr.
According to the Board of Directors proposal, the reason for capital increment is to expand UNIC’s investment and profitability, accelerate its competitiveness and for other economic reasons.
However the general assembly proposed that the capital increment be postponed for the coming year since shareholders need time to fully conclude their arrears to be paid for the 500 million birr capital increment.
It is recalled that in 2018 the general assembly of UNIC decided to double its capital from 250 million birr to 500 million birr in five years, and the paid up capital has now reached 473.4 million birr.
Shareholders recommended that those who are expected to pay their part shall get time to pay to reach at half a billion birr within one year time and proposed further capital increment for the coming year or, alternatively in the middle of this financial year should the board decide to call an extraordinary meeting.
UNIC in peak performance
TotalEnergies launches the 3rd edition of the startup challenge
TotalEnergies launches the third round of startup of the year challenge in 32 countries within the African continent.
The third round was launched with the aim to support young African entrepreneurs between the ages of 18 and 35. “All business creation project holders and young innovative startups with a positive impact on their communities and the planet can participate,” stated TotalEnergies.
According to the official statement of TotalEnergies, entrepreneurs can participant in three categories, that is: Best business creation project, Best startup under-3 years of age, and Best female entrepreneur.
“Beyond the entrepreneurial spirit, this year’s challenge reaffirms total energies commitment to support the socio economic development of the countries in which the company operates in Africa,” said Total.
The competition is said to strength the local fabric by supporting the most innovative entrepreneurs in the realization of their project.
According to TotalEnergies, three winners will be selected from each participant country and following the nomination of the three winners per country, an international jury will meet to select the three grand winners for the continent.
“A local jury made up of experts, people from the world of startups, company managers from local sustainable development players and managers from TotalEnergies Marketing Ethiopia will select three winners from Ethiopia,” TotalEnergies Ethiopia disclosed.
According to TotalEnergies, winners will get rewards and benefits including: Financial support, media visibility and coaching.
The 32 participating countries are from North Africa: Algeria, Egypt, Morocco, Mauritania and Tunisia West Africa: Ivory Coast, Ghana, Guinea, Nigeria, Senegal and Togo, Cameroon, Gabon, Equatorial Guinea, Central Africa: Democratic Republic of the Congo and Republic of the Congo, East Africa: Ethiopia, Eritrea, Kenya, , Uganda and Tanzania and from South Africa: South Africa, Angola, Botswana, Eswatini, Malawi, Mozambique, Namibia, Zambia and Zimbabwe and the islands of Reunion, Island-Mayotte Island, Madagascar.
Accessible directly through an online platform, registration was opened on the 4th of November 2021 which stretches to December 23, 2021.
Additional to the previous start-up launches, the “best female entrepreneur” is a new feature for the 3rd edition which aims to firmly encourage female entrepreneurship on the continent.
The first edition of total energies startup challenge was held in 2016 where 102 winners were chosen from 34 countries while the second was held in 2019 participants were from 55 countries worldwide, 165 winners were selected.
Scaling innovations through partnerships
AHRI and EPHI kicks off the SUPER project
By Jonathan Ecubay
The Armauer Hansen Research Institute /AHRI/ and the Ethiopian Public Health Institute /EPHI/ collaboratively launched the SUPER project on November 12, 2021.
The SUPER project which is an acronym for Scaling Up Pathogen Genomic Sequencing for Epidemic Response in Ethiopia (SUPER) secured a grant funding from the Bill and Melinda Gates Foundation under the Global Grand Challenges and is set to run till August 31, 2022.
“Your presence here is a powerful testament to our collective desire to see positive change through an effective and progressive response to the project to advance science, technology, and innovation for a better understanding of genomic sequencing of SARS-C0V-2 both in Ethiopia and around the world,” remarked Dr. Getachew Tollera, Deputy Director General of EPHI whilst addressing researchers of both AHRI and EPHI at the launching workshop.
It is to be recalled that the COVID-19 pandemic brought about unprecedented challenges for Africa, with every country potentially at risk for unmitigated spread of SARS-CoV-2. Moreover, the emergence of new SARS-CoV-2 variants is further raising concerns of the possibility of re-infection among those previously infected with the ‘wild type’ virus. To this end, Dr. Atsbeha Gebreegziabxier, Principal Investigator of the SUPER project explained that the research will boost the country’s sequencing capacity to establish routine SARS-CoV-2 genomic surveillance and monitor the emergence and impact of new variants to better inform public policy.
“It is a great pleasure for AHRI to partner with EPHI and promote regional based partnerships which will greatly contribute in public health emergency response and intervention. We look forward to have an open data sharing between both institutes as well as share our genomic capacity facilities for the success of this project,” stated Dr. Alemseged Abdissa, AHRI-Deputy Director General.
Over 1,000 SARS-CoV-2 positive samples is set to be collected across 14 hospitals and laboratories over a period of ten months which will be subjected to next generation sequencing and bioinformatics analyses to identify any new variants. During the course of the project the efficacy of existing diagnostic assays for detecting these different variants will be tested. New genomic data will be promptly uploaded to public repositories, and a web-based platform will be developed to rapidly communicate research findings to relevant stakeholders, including the Ethiopian Ministry of Health, so that results can be readily translated into public health policy.
Dr. Andargachew Mulu, senior scientist at AHRI explained that the project will be important in evidence generation, synthesis, transfer and implementation. Furthermore, he elaborated that it will it will go a long way in building the capacity of both institutes through short and long term trainings as well as promoting knowledge and technology transfer.
International schools shutting doors receive final warning from Ministry
Ministry of Education issues last warning to international schools which have been shutting down classes without informing the ministry as if there is an imminent threat to the capital despite claims from rebel forces.
The letter from the ministry sent to the international schools which have stopped classes reads, the schools have stopped classes without announcing to the ministry or without any obvious reason. Unless the schools re-start class with in one week, the ministry will revoke the teaching license indicates the letter. Similar to Education Ministry the parents of the students in the various schools seem to be in opposition of the idea of the school closure.
“There is no serious situation in Addis Ababa which could lead to the closure of classes,” said officials from the Ministry of Education. As officials state, even if the school have issues, they should inform the ministry before shutting classes.
Last week most of the international schools have been sending a letter to parents indicating that classes could be closed due to security concerns. Following this, last week on November 4, 2021 the ministry sent a notification letter to the international schools saying that it is not appropriate to send such a message to the parents without any direction from the relevant government body or the Ministry of Education adding that all schools will remain open.
Currently there are about 26 international schools in Ethiopia, 24 are situated in the capital and 2 in Oromia region within Bishoftu.
The ministry is authorized to give and renew license for international and societal schools and every school has an obligation to inform the ministry whenever it stops classes for either permanent or temporary reasons.
In overall context that has led to closure of the schools in the first place, the government has been moving swiftly to protect civilians from atrocities being committed by the terrorist group TPLF in several parts of the country. On November 2, 2021 the government declared a nationwide state of emergency. The six-month state of emergency allows, among other things, for roadblocks to be established, transport services to be disrupted, curfews to be imposed and for the military to take over in certain areas. Anyone suspected of having links with “terrorist” groups could also be detained without a court warrant, while any citizen who has reached the age of military service could be called to fight.
On similar news, starting from Monday November 8, 2021 the ministry gave the first round of the 12th grade national examination which ended peacefully.
According to the ministry, in the first round 565,255 students took the national exam which was 96 percent from the expected number.
Also in areas the national exam has not been administered due to various problems, it will be given in the second round after making psychological readiness of students.
