Ethiopian Reinsurance (Ethio Re) has reported strong financial results for the 2023/24 fiscal year, achieving an impressive 60% growth in net profit to 391 million birr, despite rising natural and man-made catastrophes.
The results were presented at Ethio Re’s 9th Annual General Meeting, held at the Hilton Hotel on December 31, 2024.
The company’s reinsurance revenue, including revenues from policy sales, increased by 29% year-on-year to 2.2 billion birr. Its net reinsurance result stood at 154.2 million birr.
In a LinkedIn post, Ethio Re highlighted, “These results reflect its effective market navigation and commitment to stakeholder’s value.”
Despite this strong performance, Ethio Re’s executives noted a shift in the reinsurance industry from a ‘soft’ market to a ‘hard’ one, driven by rising retrocession costs and claims linked to growing natural and man-made catastrophes.
Fikru Tsegaye, Acting CEO of Ethio Re, commented, “Natural and man-made catastrophes have highly increased in the past few years. Starting from the Ukraine-Russia war, to other global, regional and domestic catastrophes, there are a lot of hazards. There is also increasing terrorism, cybersecurity threats and other disasters. Due to these catastrophes, the reinsurance industry has shifted from a soft market to hard-market.”
He added, “The retrocession price [the price of the premiums Ethio-Re buys from global re-insurers] has surged.”
