The Ethiopian Reinsurance Company has sustained a loss of 59 million birr in the first year of its entering into the insurance business in Ethiopia.
The company that commenced its operation in July 2016 with seven banks, 17 insurance companies, 80 individuals and one employees’ association as its shareholders has collected a premium of 519.5 million birr in the accounting year ending June 30.
Out of the total premium, 37 percent was collected from mandatory reinsurance underwriting, 62 percent from direct insurance and the remaining from reinsurance to large disaster risks.
The company had also paid 82.2 million birr as compensation to claimants while the total outstanding claim stands at 71.9 million birr. It was also reported that the total life insurance compensation payment stood at 3.7 million birr.
Apart from compensation expenses, Ethio Re’s administrative costs summed up to 12.8 million birr.
At its second annual meeting held today, the Company revealed its strategy dubbed Vision 2027 that aims sees the company become an internationally competitive and rated reinsurer.
