Tanzindia expenses 'eats' profits

Tanzindia Assurance Company net profit has slowed down by almost a half after total claims and expenses swelled 12.5 per cent in the year ending last December compared to the previous one.
The assurance firm, which is a sister company of Keninda Assurance of Kenya, saw its net profit decelerate to 230.8m/- at the end of 2012 from 415.8m/- of 2011.

The profit, despite an increase of total revenue by almost 8 per cent to 7.37bn/-, slowed down by surging costs of claims and expenses that increase to 7.01bn/- compared to 6.23bn/- of previous year. 

During the year under review, the assurance firm's gross earned premiums increased by almost 13 per cent to 13.15bn/- but was eaten by reinsurers' share of gross premiums of 8.96bn/- to net almost one third of total insurance income.

Other income portfolio also generated a substantial amount that increase to 3.18bn/- from 2.8bn/-. Tanzindia said in the financial statement released yesterday that commission and general administration expenses went up by 10 per cent and 7 per cent respectively.

The profit also slowed down earning per share to 150/49 from 319/91. The assurance firm, though its assets declined slightly to 18.59 from 18.95bn/- its share capital increased to 1.53bn/- at the end of last December from 1.3bn/- of 2011.

Tanzindia opened doors late 2003 at Dar es Salaam as a subsidiary of Kenindia Assurance of Nairobi, Kenya. Kenindia is promoted by the Indian government owned insurance companies totalling seven.
Source: The Daily News, www.co.tz, reported from Dar es Salaam
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