Shareholders of the African Trade and Investment Development Insurance (ATIDI) will receive $500,000 less dividend pay after the firm reported a 6pc decline in net profit last year.
Following the 23rd Annual General Meeting held in Kigali Rwanda, shareholders of the pan- African insurer, formerly known as African Trade Insurance Agency (ATI), approved the distribution of dividends amounting to $8.2 million (Ksh 1.15B) from $8.7 million (Ksh 1.22) paid out in 2021.
“The year 2022 presented a formidable challenge – marked by massive headwinds stemming from health, political, economic and climate shocks across the globe. The combination of the COVID-19 pandemic, its lingering economic impact, the Russia-Ukraine conflict and climate change has had some bearings on our overall performance for 2022,” said Manuel Moses, Chief Executive Officer ATIDI.
During the period, net profits declined from $34.9 million the previous year to $32.8 million last year as gross written premiums also fell 7pc to $133.2 million from $143.5 million.
“Our Net Written Premium grew by 5pc and our Gross Premium declined by 7pc, resulting mainly from challenging global conditions, but also due to the full amortization of some longer-term contracts that reached natural termination,” said Dr. Birru Ayalew, ATIDI Chairman.
Following the entry by Angola which became ATIDI’s new member state and Japan’s Export Credit Agency, NEXI which is the newest institutional shareholder, $14.8 million capital injection in June this year, the insurer reported a 7pc growth in total equity to $553.3 million from $516.3 million.
On the other hand, total assets grew 15pc to $882.1 million from $767.7 million.
ATIDI says due to disruptive global headwinds which affected many of 21countries it has operations, its gross exposure surged 22pc to $8.1 billion from $6.6 billion reported in 2021.
Kenya as a shareholder for instance had a net exposure amounting to $135.13 million last year from 125.73 million reported in a year earlier.
