Africa Merchant Assurance Company (Amaco) has reported a Sh39.5 million after tax profit for the year ended December 31, 2018, bouncing back after a two-year loss-making streak.
The firm made a Sh11.7 million after tax loss for the year ended December 31, 2017 and Sh34.78 million loss in 2016.
It posted an improved performance for the year ended December 31, boosted by lower operating costs and claims even as its gross earned premiums and income fell.
The insurer’s net claims dropped 42.64 percent to Sh857 million in 2018 from Sh1.4 billion the previous year. Its operating expenses decreased 3.59 percent to Sh875.5 million compared to Sh908.1 million the previous year.
Amaco gross earned premiums fell 23.06 percent to Sh2.28 billion in 2018 from Sh2.96 billion a year earlier, while net income also dropped by 24.11 percent to Sh2.04 billion compared to Sh2.69 billion a year earlier.
Amaco share of the motor segment has dropped significantly to about 56 percent in 2017 from a high of 80 percent in 2011 on the back of what it terms as huge fraud-related losses.
The insurer had earlier said it was courting motorists with free vehicle clinics to raise revenue.