State-owned Insurance Corporation Profitably Marches Ahead

Aug 26 , 2023

State-owned Ethiopian Insurance Corporation (EIC) sees another profitable year with gross profits soaring to 1.4 billion Br. Its 36th general assembly was held at the Haile Grand Hotel on Asmera Road last week. CEO Nesanet Lemesa welcomed the managerial staff who were beneficiaries of a salary bump and benefits in the ended year as the insurance company netted 6.9 billion Br in premium payments, which accounted for 31pc of the industry total. The Company's total coverage has climbed to a staggering 4.4 trillion Br, a nearly 12pc increase from the prior year, as it managed to renew and issue 161,315 policies with its profits growing by nine per cent. Despite the growth, the CEO indicated that a decline in aviation insurance premiums of 716 million Br due to the combination of COVID-19 and the Russo-Ukraine war had resulted in less than satisfactory performance. EIC managed to accrue 603 million Br from interest income and building rentals. The Insurance Company under the supervision of the country's sovereign wealth fund, Ethiopian Investment Holding (EIH), also managed to pay claims worth 3.5 billion Br in the year. Nesanet mentioned that the confluence of conflict and inflation had hindered several of its branches from functioning at optimal levels while managing to add five satellite branches in the year.