, NAIROBI, Kenya, May 15 – The African Trade Insurance Agency (ATI) has announced a 342 percent jump in net profit at Sh51 million for the year ended 2012 marking a turnaround from a Sh21 million loss experienced in 2011.
The company’s Gross Written Premium increased to Sh1.1 billion compared to the Sh850 million recorded in 2011 – a 30 percent increase over the previous year.
Africa Trade Insurance Agency Chief Executive Officer George Otieno said that the financial improvements reflect the company’s efforts on cost containment, aggressive marketing and shrewd management of its investment portfolio.
“We are gratified that the cost containment strategy we implemented two years ago along with our new investment policy that emphasises diversification is now bearing fruit,” Otieno said.
The Gross Exposure (the sum insured) posted a figure of Sh60 billion ($706 million), a 19 percent increase over 2011.
ATI has also built into its balance sheet a Sh93.5 million ($1.1million) claims reserve.
“In the next 12 months the company plans to roll out a number of initiatives to help drive growth and increase its profitability,” he revealed.
Key among them is the implementation of an underwriting system, which allows the company to produce a greater amount of policies with a decrease in turn-around time and the ability to create a database of credible and accurate data.
ATI also plans to expand its credit insurance business by providing financial products to banks, local companies and the local branches of multinationals through stepped-up marketing efforts within its member countries.