Nib Insurance Reports Strong Profit Growth Despite Challenging Operating Environment

Addis Ababa — Nib Insurance Company has reported a pre-tax profit of 457.9 million birr for the fiscal year ended June, supported by strong performance in its General Insurance business, according to the company’s latest financial statements.

General Insurance generated 522.9 million birr in profit, offsetting a 65 million birr loss from Life Assurance. Overall profit rose by 14 percent year-on-year, while earnings per share increased by 30.6 percent to 153 birr.

Board Chairman Shisema Gebresilassie said the results reflect the company’s resilience amid security challenges, inflationary pressures, foreign exchange reforms, liquidity constraints, and regulatory changes, including the VAT proclamation.

Nib Insurance’s balance sheet also strengthened during the year. Total assets grew by 20.6 percent to 4.1 billion birr, while total liabilities increased to 2.4 billion birr, largely due to higher reserves for outstanding claims and unearned premiums.

The company recorded an increase in its Gross Written Premium Income, reaching 1.74 billion birr, which is a 37 percent rise from the previous year. Although this figure narrowly missed the set target, it indicates significant growth. The General Insurance segment was the largest contributor, accounting for over 90 percent of the total premiums, with motor insurance being the main revenue driver within that segment. Overall, total insurance revenue climbed to 1.5 billion birr, reflecting a 19 percent growth. Furthermore, the underwriting surplus saw a marked improvement of 21.7 percent, amounting to 602.6 million birr.

It also strengthened its capital position, with paid-up capital rising to 1.21 billion birr and fixed deposits increasing to 974.3 million birr. Investments in government and development bank bonds were made in line with statutory requirements.

Nib Insurance said a dividend tax dispute related to 2023 reinvestments remains under review by the Federal High Court.

source Birrmetrics