Oromia Insurance increases asset 43 percent

Oromia Insurance Company, which joined Ethiopian insurance business a year ago, announced that its total asset has grown by 43 percent.

The asset is increased to 41.1 million (around 3.2 million USD at current exchange rate) from it was 28.8 million birr. Presenting performance report of the company yesterday (January 26, 2010) at the Hilton Addis, the Board Chairman of OIC, Elias Genete said the company is growing at ten percent per annum as planned.

As strategy of strengthening financial capacity of the company, OIC has invested about half of its asset in various sectors. “So far we have placed 20 million birr in fixed time deposit in Oromia International Bank and Cooperative Bank of Oromia. We also plan to invest 4 million birr in these two banks,” Elias said.

OIC, which is aiming to add eight new branches to the existing 14, also plans to invest one million birr in Elemo Kiltu Oromia Business SC.

The Chairman also noted that OIC has recently joined with other local insurance companies and able to include China Highway Company to its client list. The Chinese company is currently building a multi million dollars Gedo-Bako-Nekemt road.

The company, which began operation February 26, 2009 with paid up capital of 26 million birr, has paid a total of around three million birr to its customers out of six million birr worth claims.

Now, OIC is planning to increase its current maximum payment capacity per claim to five million birr from it is now limited to two million birr.

The company with authorized capital of 200 million birr and subscribed capital of 85 million birr is also planning to start life assurance and micro-insurance services by June 2010. The total number of OIC shareholders has now reached 540 while it has 330 clients.

Including the recently established Ethio-life Insurance Company, there are a total of twelve Insurers in the country of which one belongs to the government.

With a total capital of 642.7 million birr, the number of insurance company branches has reached 190 of which 50 percent are situated in Addis Ababa. Private insurance companies accounted for around 80 percent of the total branches.

Recent report of the National Bank of Ethiopia shows that one branch insurance company in the country serves almost 411,578 people.