Africa insurance Company, which is one of the oldest private insurance companies in Ethiopia, was able to collect Birr 585 million from life and general insurance premiums and earned Birr 32 million from life insurance during the past fiscal year despite economic challenges in the insurance industry.
The company which was established in 1994 collected Birr 553 million in the 2016/17 fiscal year and Birr 494 million in the previous year from general and non-life insurance premiums. The company’s president, Kiros Jiranie, said, “The growth of general insurance for the year stood at 12 percent.”In the reported year, the company settled Birr 391 million in claims which showed an increase of Birr 77 million from the previous year.
According to Ato Kiros, the insurance premium market is dominated by the state owned insurer Ethiopian Insurance Corporation which takes the 35% share of the market. The president said excluding EIC, Africa Insurance Company is one of the top three private insurers in the country.
The company’s president said insurance companies had to become creative in developing products and raising awareness. He also wants the government to help promote and undertake studies via actuaries to expand the life insurance business, which is common in other parts of the world. He said, “Insurance companies may focus on the short term target to make a profit but the government can look at the big picture.”
According to Kiros, Africa Insurance Company’s assets is currently Birr 1 billion. During the current fiscal year, the company will move its headquarters to its newly built 12 storey building in Japan at African Avenue (Bole Road). The building, which has three basements for parking, was built at a cost of Birr 160 million.