Hibret Insurance S.C., a leading Ethiopian insurer, is preparing for a new phase of expansion. The company aims to diversify its revenue sources, strengthen its market presence, accelerate digital transformation, and potentially list on the Ethiopian Securities Exchange (ESX). This strategic move follows a strong financial performance in the 2025/26 fiscal year, with a 14.5% increase in net profit to 965.32 million birr.
The company's gross written premiums across its non-life and life insurance businesses, along with General Takaful contributions, rose by 24.18% to 3.42 billion birr. According to its 2025/26 annual report, Hibret is preparing a five-year strategic plan covering the 2027/28–2031/32 financial years. This plan will guide its next stage of development, focusing on financial resilience, operational efficiency, business diversification, and long-term value creation.
One of Hibret's significant strategic developments is its preparation to enter Ethiopia's emerging capital market. On June 29, 2026, the Ethiopian Capital Market Authority (ECMA) approved Hibret Insurance's share registration statement. This makes it the first insurance company in Ethiopia to receive such approval under the country's capital market regulatory framework. The share registration approval is distinct from a listing on the ESX, which remains a potential next step in the company's expansion plans.
Hibret has strengthened its financial foundation through a substantial capital increase. Following a shareholder decision in December 2025 to raise its capital to two billion birr, paid-up capital increased by nearly 40% to 1.88 billion birr by June 30, 2026. This increase is expected to support business expansion, reinforce the company's ability to meet policyholder obligations, and provide greater financial capacity to pursue its strategic priorities.
Wondwossen Teshome, chairman of the Board of Directors, stated that expanding the customer base and reducing dependence on non-life insurance are among Hibret's major priorities. The company plans to target high-potential market segments and strengthen distribution partnerships with insurance brokers, banks, microfinance institutions, and other financial service providers. During the 2025/26 financial year, non-life insurance generated 3.17 billion birr in gross written premiums, accounting for approximately 93% of the company's combined premium and contribution income.
Despite its expansion ambitions, Hibret faces financial and operational pressures that could affect the sustainability of its growth. Insurance service expenses, before net reinsurance expenses, rose by 41.84% to 1.74 billion birr during the reporting year. The company will maintain strict cost discipline across operational, administrative, and capital expenditure while strengthening underwriting standards, claims management, and risk assessment.
Hibret also intends to strengthen its digital capabilities, cybersecurity, and business continuity systems to support secure and reliable operations. The company plans to accelerate implementation of its new core insurance system, upgrade digital platforms and customer service channels, expand self-service capabilities, and automate key operational and reporting processes. This will help improve service delivery, reduce operating costs, and respond to changing customer expectations.
Key points
- Hibret Insurance plans to diversify revenue sources and expand its market presence.
- The company aims to accelerate digital transformation and potentially list on the Ethiopian Securities Exchange.
- Hibret's expansion plans are supported by a substantial capital increase and a strong financial performance in the 2025/26 fiscal year.
