AWASH INSURANCE DECLARES 16.3 mil br. NET PROFITS

Awash Insurance Company profited a net of 16,307,694 birr during 2009/10 fiscal year, reported on the 15th Annual General Meeting of the Company, which was held at Hilton Hotel on October 30, 2010.

The Board Chairperson, Mr Kanaa Daba stated on the meeting that the company achieved 99.4pc against its annual plan in Gross Written Premium.

Highlighting on the Ethiopian Insurance Industry, Mr Kanna reported that the competition in the industry is based on Non-quality grounds and non-service efficiency standards, which resulted in rates that were uneconomical and non-commensurate with risks carried, according to the insurer.

AIC earned a profit of 24 million birr before tax; a 155pc increase in comparison with the previous year 2008/09.

According to the chairperson, the paid up capital of AIC grew to birr 44.2 million at the turn of the fiscal year.  Moreover, as per the decision of the Extraordinary Annual General Meeting the Company’s paid-up capital should reach Birr 50 million as at the end of June 2011.

Regarding prospects of the company, Mr Kanaa briefed that the draft law, ‘No premium, No cover’, up on promulgation, could herald bright future for the Ethiopian Insurance Industry.  In addition, implementation of the AIC’s General Insurance Information System (GIIS) and success in lowering inflation and relaxation of credit are reported to be future hopes for the company’s achievements.