{"id":12384,"date":"2014-05-19T13:48:03","date_gmt":"2014-05-19T13:48:03","guid":{"rendered":"https:\/\/www.atidi.africa\/ati-africas-trade-credit-and-investment-risk-insurer-posts-record-profit-in-2013-driven-by-demand-for-infrastructure-development-in-member-countries\/"},"modified":"2014-05-19T13:48:03","modified_gmt":"2014-05-19T13:48:03","slug":"ati-africas-trade-credit-and-investment-risk-insurer-posts-record-profit-in-2013-driven-by-demand-for-infrastructure-development-in-member-countries","status":"publish","type":"post","link":"https:\/\/www.atidi.africa\/ja\/ati-africas-trade-credit-and-investment-risk-insurer-posts-record-profit-in-2013-driven-by-demand-for-infrastructure-development-in-member-countries\/","title":{"rendered":"ATI \u2013 Africa\u2019s trade credit and investment risk Insurer posts record profit in 2013, driven by demand for infrastructure development in member countries"},"content":{"rendered":"

NAIROBI, 19 May 2014 \u2013<\/strong>George Otieno, Chief Executive Officer, Toavina Ramamonjiarisoa, Chief Financial Officer and Jef Vincent<\/a>, Chief Underwriting Officer<\/a> of the African Trade Insurance Agency (ATI<\/a>) gave a preview of the company\u2019s 2013 results in Nairobi ahead of ATI<\/a>\u2019s Annual General Meeting<\/a>, scheduled to take place in Dar es Salaam, Tanzania and to be hosted by H.E. President Jakaya Kikwete.<\/p>\n

At the press event, Mr Otieno acknowledged the increasingly important role that infrastructure development, which includes the energy sector, is playing in the company\u2019s growth. In 2013, ATI posted a record profit of $1.5 million (Ksh128.5 million) \u2013 an increase of 144% over the profit made in 2012. Another important demand area that the company is insuring is financing, which is strongly linked to infrastructure projects.<\/p>\n

\u201cWe are here to support the priority areas of our member countries. In 2013, this included large projects such as covering fuel importation into Zambia, insuring a bank\u2019s financing in support of Tanzania\u2019s state power utility\u2019s construction plans and support of the Olkaria IV geothermal plant in Kenya. With ambitious objectives to develop infrastructure in most countries, we predict that this priority will continue driving demand for the next decade,\u201d noted Mr Otieno.<\/p>\n

Tied to this demand for support of infrastructure development by ATI\u2019s member countries, the company\u2019s growing international reputation in underwriting energy sector deals led to them securing a \u20ac2 million grant (ksh236 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 a future initiative that will see a newly formed body \u2013 the African Energy Guarantee Fund \u2013 insure renewable energy projects across Africa.<\/p>\n

Presenting on ATI\u2019s financial management strategy, Mrs Ramamonjiarisoa indicated that another important contribution to the strong bottom line is the company\u2019s efforts to diligently manage its finances, which were reflected in results over the past five years. This led to a drastic reduction of ATI\u2019s cost ratio \u2013 the percentage of the company\u2019s earned premium used to pay all costs \u2013 from 268% to just 59%.<\/p>\n

Diversification of the investment portfolio is the second tier of ATI\u2019s financial management strategy that was initiated in 2011. As a result, the credit quality of the company\u2019s investment portfolio was much higher than a few years ago \u2013 the proportion of assets rated in the AA and AAA ranges increased from 0% to 71% \u2013 and, more importantly, the dispersion of counterparty risk substantially improved with more than one hundred counterparties recorded in 2013 compared to only two initially.<\/p>\n

Other key achievements presented included:<\/p>\n

Volume of Business Supported<\/p>\n

$13 billion \u2013 Ksh1 trillion (+24%)<\/strong><\/p>\n

Insured Trade & Investments (Gross Exposure<\/a>)<\/p>\n

$872 million \u2013 Ksh75 billion (+23%)<\/strong><\/p>\n

Shareholders\u2019 Capital<\/p>\n

$178 million \u2013 Ksh15 billion (+14%)<\/strong><\/p>\n

Net Earned Premium<\/p>\n

$6 million \u2013 Ksh514 million (+55%)<\/strong><\/p>\n

The company\u2019s 2013 annual accounts will be formally unveiled and approved during its 14th Annual General Meeting on 28th May in Dar es Salaam, Tanzania. The Honourable Saada Mkuya Salum (MP), Minister of Finance, will chair the meeting.<\/p>\n","protected":false},"excerpt":{"rendered":"

NAIROBI, 19 May 2014 \u2013George O […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[970],"tags":[],"class_list":["post-12384","post","type-post","status-publish","format-standard","hentry","category-970"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.atidi.africa\/ja\/wp-json\/wp\/v2\/posts\/12384","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.atidi.africa\/ja\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.atidi.africa\/ja\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.atidi.africa\/ja\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.atidi.africa\/ja\/wp-json\/wp\/v2\/comments?post=12384"}],"version-history":[{"count":0,"href":"https:\/\/www.atidi.africa\/ja\/wp-json\/wp\/v2\/posts\/12384\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.atidi.africa\/ja\/wp-json\/wp\/v2\/media?parent=12384"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.atidi.africa\/ja\/wp-json\/wp\/v2\/categories?post=12384"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.atidi.africa\/ja\/wp-json\/wp\/v2\/tags?post=12384"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}