Africa Merchant Assurance Company (Amaco) has reported a Sh11.7 million after tax loss for the year ended December 31, 2017, to remain stuck in the red for the second year in a row. The firm made a net loss of Sh34.78 million in 2016.
The insurer narrowed its losses by more than Sh23 million but remained in the loss-making territory weighed down by rising claims and high operating costs.
The insurer’s net claims went up 14.18 per cent to Sh1.49 billion in 2016 from Sh1.3 billion the previous year. Its operating expenses decreased 16.91 per cent to Sh908.1 million compared to Sh1 billion the previous year.
Amaco’s gross earned premiums fell marginally to Sh2.96 billion in 2017 from Sh2.99 billion a year earlier, while net income also remained flat at Sh2.69 billion compared to Sh2.7 billion a year earlier.
Amaco’s share of the motor segment dropped significantly to 56 per cent from a high of 80 per cent 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.