Hibret Insurance S.C. is preparing for a potential listing on the Ethiopian Securities Exchange after receiving regulatory approval for share registration, marking a significant step towards expanding Ethiopia's capital market. The Ethiopian Capital Market Authority approved Hibret's share registration statement on June 29, 2026, making it the first insurance company in Ethiopia to receive such approval under the country's capital market framework. The share registration approval is distinct from an actual listing, which remains a potential next step in the company's expansion plans.
The insurer's listing ambitions follow strong financial results for the 2025/26 financial year. Net profit increased by 14.5 per cent to 965.32 million birr, while gross written premiums across its non-life and life insurance businesses, together with General Takaful contributions, rose by 24.18 per cent to 3.42 billion birr. Hibret also strengthened its financial foundation through a capital increase, with paid-up capital rising by nearly 40 per cent from 1.34 billion birr in 2024/25 to 1.88 billion birr by June 30, 2026, following a shareholder decision in December 2025 to raise capital to two billion birr.
Expanding beyond non-life insurance remains a key priority. Wondwossen Teshome, chairman of the Board of Directors, said expanding the customer base and reducing dependence on non-life insurance are among Hibret's major priorities. During 2025/26, non-life insurance accounted for approximately 93 per cent of combined premium and contribution income, generating 3.17 billion birr in gross written premiums. Life insurance and General Takaful, meanwhile, recorded stronger growth rates of 38.69 per cent and 70.07 per cent respectively, though they contributed far less to overall revenue. The company plans to target high-potential market segments and strengthen distribution partnerships with insurance brokers, banks, microfinance institutions and other financial service providers.
Digital transformation and cost control form the backbone of Hibret's strategy going forward. The company plans to accelerate implementation of its new core insurance system, upgrade digital platforms and customer service channels, expand self-service capabilities and automate key operational and reporting processes. However, the transition to the new core insurance system experienced delays during 2025/26, while acquisition of a separate life insurance system was postponed to the following financial year. These projects have become priorities for 2026/27. Meanwhile, insurance service expenses before net reinsurance expenses rose by 41.84 per cent to 1.74 billion birr during the reporting year, exceeding the growth rate in premiums and contributions. Wondwossen said the company would maintain strict cost discipline across operational, administrative and capital expenditure while strengthening underwriting standards, claims management and risk assessment.
Hibret is also diversifying income sources beyond insurance operations. Net investment income increased by 32.64 per cent to 722.12 million birr during 2025/26, supporting growth in profit before tax. The company acquired the Alpaulo Building, a commercial property in Addis Ababa, and office space at Kazanchis Real Estate, which now houses its Kazanchis Branch Office. These properties are expected to strengthen the company's asset base and generate additional income over time. The company also plans to manage excess liquidity through short-term investments and income-generating real estate investments where commercially viable.
For savers and investors in Ethiopia, Hibret's potential listing would create a new investment opportunity in the insurance sector while the insurer's diversification strategy aims to build a more balanced business structure less dependent on non-life premiums. The company faces challenges in making its emerging businesses financially sustainable, with General Takaful recording a loss of 7.31 million birr during 2025/26, though this represented a 37.4 per cent improvement from the previous year. Hibret had 614 employees at the end of the reporting year, compared with 584 a year earlier, and plans to continue recruiting experienced insurance professionals while implementing a five-year strategic plan covering 2027/28 to 2031/32.