Even though gross written premiums showed no significant increase, the decade-old insurance firm Ethio Life & General registered 19pc profit growth in the past fiscal year with the support of investment income.

In the reported period, the firm managed to net 23.61 million Br in profits, which pushed shareholder returns to 235.12 Br a share, an 8.8pc increase from the previous year.

The year was multifaceted, an exciting as well as a challenging year, according to Yoseph Endeshaw, board chairperson of the firm.

“The stiff and unethical competition and a critical shortage of insurance professionals posed challenging conditions in our business undertakings,” said Yoseph, addressing shareholders in the firm’s annual report. "Despite the hurdles, we continued to perform strongly."

Along with a high underwriting surplus, incomes generated from time deposit interest and dividends jumped by 15pc to 17.59 million Br and by 18pc to 1.72 million Br, respectively.

The firm put 143.37 million Br in fixed time deposits and 47.62 million Br invested in shares, bonds and properties.

Underwriting surplus has also risen by 47pc to 50.66 million Br due to a reduction in premiums ceded and claims.

The total gross written premiums, both in life and general insurance, has increased marginally by two percent to 131.9 million Br.

“The increase in gross written premiums is not satisfactory,” commented Abdulemenan Mohammed, a financial statement analyst with vast experience in the financial industry.

Being very selective in issuing insurance coverage has kept the firm from writing huge premiums, according to Shimeles G. Giorgis, the firm's chief executive officer.

"It lowered our market share in the industry," Shimeles told Fortune. "At the same time, it helped us to control claims."

Claims paid by the firm went down by four percent to 49.24 million Br. This is recorded despite the trend in the industry, where claims have been soaring.

Out of total gross written premiums, 36.25 million Br was ceded to reinsurers. The retention rate rose to 72.5pc from 68.8pc.

“There is still room for increasing the retention rate,” Abdulemenan says.