Hibret Insurance Company S.C. reported a 14.5 percent increase in net profit after tax to 965.32 million birr for the 2025/26 fiscal year, the company announced at its 32nd Ordinary General Assembly in Addis Ababa. The result came as the insurer's gross written premiums surged 24.18 percent to 3.42 billion birr, up from 2.75 billion birr in 2024/25, according to the company's audited financial statements. Despite broader economic challenges, the insurer's performance reflected what Board Chairman Wondwossen Teshome described as operational resilience. 'This performance represents a resilient achievement achieved amid broader macroeconomic headwinds, persistent inflationary pressures, and dynamic regulatory shifts in the financial sector,' he said.
The company's profit before tax climbed to nearly 1.38 billion birr from 1.01 billion birr in the previous year, supported by strong growth across insurance underwriting and investment activities. Overall insurance revenue expanded 34.23 percent to 3.14 billion birr, while net investment income grew 32.64 percent to 722.12 million birr. Non-life insurance remained the dominant line, generating 3.17 billion birr in premiums, followed by life insurance at 196.80 million birr and general Takaful operations at 54.34 million birr.
However, tax obligations became a significant drag on earnings. Corporate tax expenses surged 151.63 percent to 415.11 million birr from 164.90 million birr, primarily driven by recent legislative amendments targeting investment income, the company said. This steep tax increase heavily moderated profit expansion, and board members noted it weighed on diluted earnings per share.
Motor insurance dominated the non-life portfolio, accounting for 63.49 percent of total non-life premiums, up from 58.88 percent the previous year. Engineering insurance, however, registered a sharp 60 percent decline, which the company attributed to a broader slowdown across the domestic construction sector. All other non-life classes posted positive growth.
Hibret's insurance service expenses climbed 41.84 percent to 1.74 billion birr, reflecting broader inflationary pressures and rising claim costs. Despite these headwinds, the company's underwriting efficiency produced a 43.39 percent jump in net insurance service result, reaching 1.10 billion birr. The board proposed distributing 868.79 million birr in dividends to shareholders following a mandatory 96.53 million birr transfer to legal reserves.
The company continued to strengthen its capital position, with paid-up capital expanding to 1.95 billion birr by late June 2026, keeping it on track to meet a shareholder-approved 2 billion birr target. Hibret also expanded its physical presence through real estate acquisitions, including a seven-storey commercial building in Bole Bulbula and operational space in Kazanchis.