Another will-be addition to the insurance industry, Debub Universal Insurance S.C., is going to be operational starting may 2013, making it the country’s 15th private insurance company, Birhanu Tesfaye, administrator of the promoters’ executive committee told EBR. Having floated shares since December 2012, the promoters hope to raise Br 50 million. Most of the promotors had prior experience of organizing the foudation of the Debub Global Bank. They were planning to name the company Debub Global Insurance. However, National Bank of Ethiopia (NBE) didn’t allow them as it would create conflict of interest with Global Insurance.
“We are in a rush to establish the company in fear of any new directive that might surface regarding the minimum amount of capital insurance companies are expected to register when they join the sector,” Birhanu told EBR.
Birhanu was referring to the rumor about a possible rise in the minimum paid up capital that insurance companies must register during establishment, even though the NBE does not confirm it yet. The current requirement is 3 million Br for general insurance businesses; 4 million for long term insurance businesses and 7 million Br for both long term and general insurance businesses.
Buna Insurance is also expected to be operational before the Ethiopian’s New Year. Tsehay Insurance Company and Birhan Insurance Company are among those insurance companies that joined the industry recently.