By Standard Reporter
Kenya: Continental trade credit and investment risk insurer, Africa Trade Insurance Agency (ATI) has posted $1.5 million (Sh128.5 million) profit for year ending December 31.
This is an increase of 144 per cent over the profit made in 2012. In 2012, ATI made Sh51 million net profit, marking a turnaround from a Sh21 million loss experienced in 2011.
Unveiling the financial results in Nairobi, ahead of ATI’s annual general meeting scheduled to take place in Dar es Salaam, Tanzania, Chief Executive Officer George Otieno said infrastructure development, especially the energy sector, is playing key role in the company’s growth. The company is also insuring the financing linked to infrastructure projects.
“We are here to support the priority areas of our member countries. Last year, this included large projects such as covering fuel importation into Zambia, insuring a bank’s financing in support of Tanzania’s State power utility’s construction plans and support of the Olkaria IV geothermal plant in Kenya,” noted Mr Otieno in a statement. “With ambitious objectives to develop infrastructure in most countries, we predict that this priority will continue driving demand for the next decade.”
The firm’s turnover increased by 24 per cent to $13 billion (Sh1 trillion) while the insured trade and investments (gross exposure) increased 23 per cent to $872 million (Sh75 billion). Shareholders’ capital increased 14 per cent to $178 million (Sh15 billion) while net earned premium increased by 55 per cent to $6 million (Sh514 million).
The company’s growing international reputation in underwriting energy sector deals led to them securing a two million Euro grant (Sh236 million) from the European Investment Bank signed during the EU-Africa Summit in April.
The grant will prepare ATI to take a leading role in initiatives that will see a newly formed body, the African Energy Guarantee Fund insuring renewable energy projects across Africa. ATI’s Chief Finance Officer Ms Toavina Ramamonjiarisoa said the company’s efforts to diligently manage its finances have reflected in results over the past five years.
“This led to a drastic reduction of ATI’s cost ratio (the percentage of the company’s earned premium used to pay all costs) from 268 per cent to just 59 per cent,” said Ms Ramamonjiarisoa. Diversification of the investment portfolio by ATI’s financial management strategy initiated in 2011 saw credit quality of the company’s investment portfolio grow higher than a few years ago to 71 per cent.
The company’s 2013 annual accounts will be formally unveiled and approved during its Fourth Annual General Meeting on May 28, in Dar es Salaam, Tanzania. Tanzania’s Minister of Finance and Economic Affairs Saada Mkuya Salum will chair the meeting.
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