Gross profit (before tax) of Berhan Insurance, the sister company of Berhan Bank, has increased by 24% to 25.5 million birr ($818,882 at the current exchange rate) during the budget year concluded June 30, 2019 compared to the previous year profit.
The report distributed this morning to shareholders at the annual meeting in Addis Ababa, shows that the total asset of Berhan Insurance has also grown to 410 million birr ($13.2 million), an increase of 30% from 316.2 million birr (close to $10.2 million) the previous budget year.
The total liability of Berhan Insurance at the end of June 30, 2019 was 280.5 million birr (about $9 million). The total equity of Berhan Insurance has reached 129.6 million birr ($about 4.2 million), according to the report.
During the year under report, Berhan Insurance has succeeded in developing its own recovery yard, according to Daniel Wondimu, Chairperson of Berhan Insurance Board of Directors, whose message is published on the report.
“This remarkable achievement witnesses, Berhan Insurance is succeeding on a strong institutional track and positive operational progress through the unified efforts of the board of directors, the management and the staff towards realizing the aspired vision, mission and objectives,” he said in the report.
Based on the report of the financial sector regulatory body of Ethiopia – National Bank of Ethiopia – there are a total of 17 insurance companies in the country of which 16 are private.
During the third quarter of the year 2018/19, the total number of insurance branches in Ethiopia has increased to 558 from 524 a year before.
The ratio of the number population to insurance branches reached 181,396: 1 by the end of 2017/18, which showed a slight improvement from 191,771: 1 in 2016/17 budget year.
By the end of 2018/19 (by June 30, 2019) the total asset of insurance industry in Ethiopia for non-life insurance providers was 18.6 billion birr (about $597.3 million).
During the same time for Life insurance the figure was 2.2 billion birr (about $70.7 million), while the total capital of non-life insurance was 7.4 billion birr (about $238 million) and for life insurance stood at 813.2 million birr (about $26.1 million), according to the National Bank of Ethiopia report.
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