ATI grows profit by 43%

The African Trademarks Insurance Agency has reported a 43 per cent growth in net profit for the year 2020.

The financial year result showed that ATI grew its net profit to $39.4m in the review year, relative to $27.55m reported in 2019.

Among other key highlights, the result showed that the agency recorded gross written premium of $125.6m, representing a 12 per cent increase between 2019 and 2020.

While it also reported a return on capital of 12.6 per cent, despite 18 per cent growth in equity, it posted a proposed dividend distribution of $9.9m, an annual growth rate of 139 per cent from 2019.

Its gross exposure, however, dropped to $6.3bn, which represented only a minor decrease of three per cent when compared to 2019 result.

On Friday, the agency stated that the result indicated that ATI had navigated the initial impact of the Coronavirus Disease crisis, managing both short and medium term effect of the pandemic on its balance sheet.

The agency has maintained its A/stable rating by Standard & Poor’s and A3/Stable rating by Moody’s.

At its 21st Annual General Meeting, the outgoing Chairman, Matia Kasaija, said, “ATI has worked with Ministries of Finance to help manage growing debt levels by re-profiling costlier and riskier debts and replacing them with longer term, affordable debts from top rated international commercial lenders.

“This has not only resulted in improvement on institutional framework for debt liability management, but also brought significant cost savings and lowered debt ratios. This is in addition to the support offered to commercial entities that facilitate private sector development in ATI member countries.”

The ATI Chief Executive Officer, Mr Manuel Moses, added, “While we embark on our third decade, ATI pledges a more robust, reliable and transformational strategic approach to its business offerings. We continue to be the de facto business risk mitigation tool that propels intra-Africa trade in support of AfCFTA.”

Ehime Alex
Ehime Alex
Ehime Alex reports the Capital Market, Energy, and ICT. He is a skilled webmaster and digital media enthusiast.

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