Tsehay Insurance Share Company, the newest entrant to the insurance market formally launched its operations at a ceremony held on Saturday June 16 at Hilton Hotel.
Tsehay Insurance which began operations when its first branch opened in mid May, currently has three branches located in; Haya Hulet, Abune Petros and the bustling market area of Addis Ababa, Merkato.
In addition, two more branches are planned to be opened before the end of the current Ethiopian fiscal year 2011/12 on July 8, in Addis Ketema and Meshualkia, with yet another undisclosed location in works.
Yonas Belay, Marketing and Business Development Executive Officer at Teshay said the company began by selling premiums from property, engineering, liability and pecuniary insurance.
He also said Tsehay Insurance, which took licenses for non-life general insurance, plans to open branch outlets in major regional cities in the next Ethiopian Fiscal year 2012/13, while in the long term the plan is to diversify its services to life insurance.
Tsehay Insurance SC was formed on September 2011 and received operating licenses on March 28, 2012. It currently has a subscribed capital of more than 45 million birr and a paid up capital of more than 11 million birr comprising of 107 shareholders.
Tsehay, the 15th insurance company will be welcomed in a sector that has few players and at best sporadic growth.
According to a December 2011 Banking and Balance of Payment report by the Central Statistics Agency, there are only 14 other insurance companies with just over 220 branches in Ethiopia; making the sector sill vastly underexplored and untapped.