Ethiopian Reinsurance registered an increase in profit after tax, reaching 391 million Br in financial year 2023/24, a 60pc jump of 146 million Br from the previous year. The company also saw a rise in revenue to 2.21 billion Br, up from 1.71 billion Br, representing a 29pc increase. Earnings per share also rose to 2,176 Br in the 2023/24 financial year, up from 1,552 Br the year before. The eight-year-old company's net investment income increased to 317.7 million Br in 2023/24, up from 269.2 million Br in the previous year. Operating and other expenses also increased, rising to 93.7 million Br in 2023/24 from 67.1 million Br. Ethiopian Re is the first reinsurance company in Ethiopia, and has been operating since 2016. Its capital structure includes private and public financial institutions as well as individual investors, with the government owning 40pc through the Commercial Bank of Ethiopia (CBE) and Ethiopian Insurance Corporation (EIC). Its current shareholders include seven banks, 17 insurance companies, one labour union, and 102 individual shareholders, totalling 127 as of June 2024. Board chairperson Meseret Bezabih stated that the company achieved its five key strategic initiatives including obtaining a global credit rating from AM Best and the extension of compulsory cession for an additional five-year term. However, the reinsurance market is facing headwinds, with rising capital costs, tightening interest rates, and decreased reinsurance availability, making it a “hard market for the reinsurance industry,” according to Meseret. Acting CEO, Fikru Tsegaye, accentuated the company’s strong balance sheet, "adequate operating performance, business profile, and marginal enterprise risk management," as affirmed by international rating agencies.
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