The Under formation Buna Insurance Share Company conducted its first ever founding shareholders meeting on June 23 electing nine to their board of directors.
The members of the board of Directors who were selected for a three year period comprised of distinguished individuals as well as companies. Among the individuals were prominent lawyer Zewdu Minas, Zelalem Abebe, Abere Mihrete, Gizachew Amare, Eskezia Mengiste, Aynalem Zeleke and Yimam Mohammed, while companies that were represented on the board include Buna International Bank Share Company and Wapp International Private Limited Company.
The meeting also presented a Memorandum of Association and articles of association to the shareholders, which was ratified.
Buna Insurance was formed on August 2011 with 10 founding shareholders and presently having 243 shareholders and more than 161 thousand shares worth more than 16.1 million birr of subscribed capital. One share amount is equal to 100 birr worth value.
The company plans to give general insurance coverage such as motor, property, work group and personal accident insurance among others, Despite the slow growth of the industry, Buna strategized itself to fill the considerable need for insurance cover present across the country.
An official at Buna Insurance told Capital that shares of the company would be sold with a view to incorporating the average man on the street as well as big businesspeople alike; ranging is shares from 5,000 to one million birr in value.
The Ethiopian Insurance Industry currently has 15 operating insurance companies with the latest being Tsehay Insurance Company, which formally started its operation on June 16th; still a far cry from the need of the 80 million plus populous.
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.