Ethiopia – Nyala Insurance sees profit spike

Ethiopia – Nyala Insurance sees leap in profits

By Muluken Yewondwossen

Nyala Insurance Share Co. (NISCO) enjoyed an over 100 per cent increase in its profit in this past fiscal year.

Profits before tax increased to 20.3 million birr from 9.5 million birr and the earnings per 1000 birr share increased to 579 birr from 271 birr the previous year.
Net profit after tax and reserve was 16.2 million birr, over double the previous year’s figure of 7.4 million birr.

According to the financial statement, dividend income from the company’s equity investment in Dashen Bank also increased by 78 per cent to 11.55 million birr
NISCO operated in 18 branches and 13 satellite offices. Eight branches and all satellite offices are located out of Addis Ababa.

The crop insurance they provide gives farmers access to financial institutions, as they are able to use their insured crops as collateral to access loans. The crop insurance includes weather index insurance and multi peril crop insurances. According to Eyob Mihirete, deputy CEO of NISCO, three years ago when the insurance company launched its crop insurance for Lome Adama Cooperative in Oromia, only around 150 farmers were active from a total of 20,000 teff, wheat and haricot bean farmers.


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