Tsehay Insurance: New Kid on The Bloc

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One of the newest insurance company Tsehay Insurance S.C held its first annual general assembly on December 22nd where it revealed its financial statements’ audited report for the year ending June 30, 2012 Fiscal Year Tsehay registered 1,495,784 birr net loss. The report indicated just a two month performance since the company started operating only in May 2012.
The insurance company which gives general insurance services got its operation license in March 2012.
Chief Executive Officer (CEO) of Tsehay Insurance Teshome Aklog explained that the company’s planned Operation Revenue was 2,700,000 birr but instead it got 2,786,272.26 birr. However fixed expenses such as vehicles purchase, office equipment, branches installation costs, and salary of professionals is what has engendered the net loss during the stated period.  Teshome further said that Tsehay Insurance currently has five branches, three of which opened in the last fiscal year and doesn’t have plans to open new branches in the current fiscal year, rather it would opt to consolidate its business through brokers, and commission agents. Tsehay currently has 31 employees, and 25 commission agents.
“In Ethiopia the insurance industry’s contribution to the Gross Domestic Product (GDP) is very small,” Teshome said adding that there needs to be a lot of awareness with the public at large, as it’s a way of preserving national treasures and can act to avoid the kind of near panic preparation that occurred with the introduction of third party insurance. 
He also said the Insurance Company had found it difficult to find competent, qualified and affordable human resources in this sector. It plans, in the current fiscal year, to make the insurance premium affordable, and through its work with brokers to setup business relationship with international companies to facilitate its work.
Tsehay Insurance also in its first annual general assembly meeting chose a replacement for one of its Board of Directors with Ger Private Limited Company filling the position after outvoting another candidate Tadesse Ayenew.