Reliance Insurance posts superb net profit

Reliance Insurance Company Tanzania (RICT) ended last year on a good-foot after posting a net profit increase of over 66 per cent, thanks to premium revenue that grew by over a third.

RICT, one of the leading private non-life insurers, posted net profit of 2.5bn/- in 2014 against 1.5bn/- of 2013. The firm attributed most of the profit to net earned premium that increased by over 40 per cent to 17.7bn/- after writing 32.4bn/- worth of covers last year.

The profitability level could have increased if it was not for the ballooning of claims that went up to 10.01bn/- in 2014 compared to 6.92bn/- of 2013.

The financial statement issued yesterday shows that other expenses commission payable and operating increase slightly to 4.7bn/- and 5.1bn/- respectively.

RICT assets grew to 41.79bn/- in 2014 from 35.05bn/- of 2013 pushed up mainly by deposits with financial institution that went up by almost 30 per cent to 15.33bn/-.

In 2014, Police data shows that the number of road accidents was reasonably low at 14,360 against 23,842 in 2013. Despite the low number of accidents in 2014 the death toll was somewhat high.

The statistics show that the rate of death as results of road accidents decreases in 2014 to 3,760 compared to 4,002 in 2013 but still the amount is almost similar to the 3,969 deaths in 2012. RICT was established in 1998 in the light of privatization of the insurance industry.

Local businessmen of repute joined hands with Pan Africa Insurance of Nairobi, Kenya to infuse the envisaged initial paid - up capital of 600m/-.

APA Insurance Limited acquired the shares consequent to merger of Pan African Insurance and Apollo Insurance. The firm has been making steady progress and has built a strong financial base and reputation for strong customer oriented culture.

RICT offers wide range of products to cover all kinds of property and liability risk exposures like fire, general crime and accident, motor vehicles, cargo and so forth.
Source: Daily News, reported from Dar es Salaam, Tanzania
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