Capital Ethiopia Newspaper

NBE approves new OIC head

Oromia Insurance Company (OIC), the youngest insurance firm in Ethiopia which launched modern policies, including livestock and crop insurance, had its new presidential appointment approved by the National Bank of Ethiopia (NBE) last week.
After founding president, Mitiku Abdissa, resigned in April 2011, Tesfaye Desta was appointed acting president of OIC. Previously he was the head of operations.
Mitiku had been in the insurance industry for over 30 years before he established OIC in 2009. 
Tesfaye, OIC’s second president had previously been a financial analyst/project officer at the Ministry of Industry from 1987 until 1991.  He also has worked for Oromo Relief Association and Nyala Insurance, where he stayed for over a decade, in a managerial position. In 2007 he joined United Insurance Company. Tesfaye became head of operations at OIC this January.
OIC has 540 shareholders with a subscribed capital of 85 million birr and 29 million birr paid up capital. Share Companies were the first share holders and own 41 percent of the company. Individual shareholders amount to 24 percent. They are followed by cooperative unions, state enterprises of Oromia, NGOs and private limited companies by 16, 10, 5 and 4 percent respectively.
The company registered a profit before tax of 2.15 million birr for the fiscal year 2010/11, while in the first year performance it lost 6.7 million birr.
The company has also entered into a reinsurance agreement in 2009/10 fiscal year with Africa Insurance Corporation, PTA Reinsurance Company and General Insurance Company of India.
OIC invested one million birr in Gutu Oromia Business Share Company and another one million birr in Elemtu Integrated Dairy Industry Share Company.
It recently launched Multi Risk Crop and Multi Peril Livestock insurance to address the farming, pastoral and agro-pastoral communities despite the constraints of having a limited number of experts in the relevant area.
It is also considering other insurance products with some advisory support from the International Labour Organization (ILO) regional office in fields such as Micro- life products including credit life, and accident and disability. Micro-property insurances, mainly fire and micro-health products are planned to be introduced shortly.
OIC has 17 branches across the country with eight of them in Finfinne (Addis Ababa) and the rest spread over the regions with a reported staff of 96 people, 70 percent of whom are men.