United Insurance has emerged as a powerhouse in the private insurance industry, boasting a notable surge in net profits, making it second only to Awash Insurance. The robust financial performance was supported by a substantial increase in earnings per share (EPS), outpacing competitors. The firm’s focus on retaining a high percentage of its premiums is evident in its retention rate and increased gross written premiums.
United Insurance’s ability to diversify its income streams through investments has paid off, with income from dividends, interest, and rent rising by 47.3pc to 255.6 million Br in its operation of the fiscal year 2023/24. It maintained a steady profitable pace amid industry forerunners while tripling its growth. United Insurance has recorded an 80.1pc net profit surge to 327.02 million Br, trailing Awash Insurance at 509.12 million Br. Its success has also been reflected in its industry-leading EPS, which jumped by 29.4pc to 479.85 Br.
The figure is higher than the private insurance industry average (34.2pc) and boasts a lead over generational peer Global Insurance (30pc). The dominance extends further, with a 12 percentage point advantage over Nyala and an eight percent lead compared to Nile. According to Board Chairperson Wondwossen Teshome, United’s success came despite an economic climate marked by persistent inflation and foreign currency shortages.
“It had never been easy to navigate through such a testing operating environment,” he said.
The growth was mainly driven by improved insurance business and investment activities. Total gross written premium soared by 58.4pc to 1.51 billion Br, of which 74pc was retained, marking a 3.5pc increase from the prior year.
May 4 , 2024 By BERSABEH GEBRE ( FORTUNE STAFF WRITER )
FORUNE ETHIOPIA
PUBLISHED ON May 04,2024 [ VOL 25 , NO 1253]
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