NIC Insurance has reported a slight pre-tax profit slowdown of 2.0 per cent, pulled down by written premium ceded to reinsures in the year ending last June.
NIC – the biggest insurer in the market, said the pre-tax profit went down from 64.73bn/- for the year ending June 2021 to 63.21bn/- last June.
Also, the state-owned enterprise earned zero net profit from its life assurance portfolio compared to 38.84bn/- from general insurance at the end of last June.
According to NIC financial statement released on Wednesday, the firm attributed the slight profit decline to the written premium yielded to reinsures almost doubled to 56.91bn/-.
The amount ate down the gross written premium despite being ranked in 124.57bn/- that was high by 42.5 per cent from 87.4bn/- in June 2021.
Thus, NIC net earned premium came to 75.2bn/- albeit up from 64.37bn/-. However, total income in the corresponding year dropped slightly to 103.93bn/- from 104.42bn/- affected by negative earnings from other operating income docket.
Also, the total income was further eroded by operating expenses that went up marginally to 40.79bn/- from 39.79bn/- at the end of June 2021. The profitability pushed up shareholders’ equity by 32 per cent.
The largest insurance firm in the country which is celebrating its 60 years of being, its total assets increased by 11 per cent to 423.99bn/- from 383.13bn/-.
Additionally, during the year under review, NIC upped its investment in financial instruments—bonds—by 15 per cent to 137.87bn/- from 120.28bn/-. Some four years ago the firm had zero investment in bonds.
Some four years ago NIC was a loss-making entity but the current management under Director General, Dr Elirehema Doriye, turned the insurer to the most profitable organisation in the sector.
Tanzania Insurance Regulatory Authority report showed that the country’s insurance industry gross written premiums rose by 11 per cent to 911.5bn/-in 2021 from 824bn/- in 2020.
