Tanzania's Bumaco Insurance profits slide

Bumaco Insurance Company pre-tax profit slowed by 21 per cent to 216.04m/- as expenses almost doubled during the 2014 financial year, the firm announced.

Bumaco, started as an insurance agent some 30 years ago, recorded a net earned premium of 3.5bn/-, but they were eaten by expenses mostly on operating and administration activities.

The total expenses by the end of last year was 2.34bn/- pushed mainly by operating and administration docket that increased by almost 600m/- to 1.67bn/- in 2014.

Bumaco’s net policy holder claims amounted to 937.74m/- at the end of 2014. The net claims was pushed up mainly by provision for claim payable that accounted for 698.43m/-.

Bumaco, which serves with certainty in the last three decades, grew from an agency to brokerage to now insurer, used 2.35bn/- on investment activities in 2014 compared to 1.26bn/- in 2013.

The firm was founded by Mr Clement Kwayu, an internationally recognised and respected management consultant. The company is the first locally owned private insurance company in the country.
Source: Daily News, reported from Dar es Salaam, Tanzania
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