Lion Insurance earns gross profit of 63.9 mln Birr
Profit surges by 4.8mln Birr
Lion insurance Company said Saturday that it has registered a gross profit of 63.9 million Birr in the fiscal year which was concluded on June 30, 2022.
Lion Insurance Share Company held its 15th Annual Regular Meeting at Elilly Hotel.
The profit showed 4.8 million Birr or 8.1% surge than the previous year, according to Abraham Gebreamlak, Chairperson of the Board of Directors at Lion Insurance S.C.
An underwriting surplus of 145.2 million Birr has also been registered, surpassing previous year’s performance by 22%, according to the performance report presented by Abraham.
Lion Insurance sold a premium of 436.5 million Birr, showing 38.2 million Birr or 9% increment than previous fiscal year.
Lion Insurance’s Earnings Per Share (EPS) has reached 345, said Abraham. Whereas, the dividend has reached 28%.
“The fierce competition characterized by price cutting within the industry, insecurity and outbreak of the Covid-19 pandemic has challenged the sector’s performance,” he said, adding, “In addition to the insecurity the bankruptcy of some contractors adversely affected insurance operations.”
The Russia-Ukraine war has also negatively impacted the performance of the company.
During the 2021/22 fiscal year, a gross claim of 165.6 million Birr has been paid, according to the report. The net claims incurred also decreased by 13% from the previous year to reach 162.1 million.
Claims amount of 54.4 million Birr was transferred to this year as net outstanding claims.
The total of the company has reached 1.3 billion Birr as of June 30, 2022, showing a surge of 35% compared to previous year’s 987 million Birr.
The Company has also registered a boost in its capital.
“Our paid-up capital reached 194.9 million Birr while the subscribed capital as of June 30, 2022 reached 300 million Birr,” Abraham said.
The company also pledged to enhance its Corporate Social Responsibilities it has already been discharging so far.
Regarding incomes, the company got total non-operational income of 74.2 million Birr from fixed time deposit at various banks, investments at organizations, rental income and other sources. The reported total non-operation income is 10.9 million Birr or 17.2% higher compared to the previous year’s total income of 63.3 million Birr.