Lucy Insurance gets going


In less than two months of  operations, Lucy Insurance SC, the 16th operational insurance company that commenced work in November 2012, collected 3.5 million birr as premium from clients.
At an extraordinary meeting the insurance held in December, it has been decided to raise the paid up capital to 50 million birr. Lucy Insurance is now in the process of floating the company’s shares to the public, as per the National Bank of Ethiopia’s requirement. Its paid up capital now stands at 8 million birr. Lucy Insurance that envisions becoming an instrument for growth and development, was founded by 13 business people and presently has 39 shareholders. It acquired its license to operate from the National Bank of Ethiopia (NBE) on October 1, 2012 after going through the official process of depositing its capital in a blocked account, presenting a feasibility study and registering the required documents signed by the founding members at the Documents Authentication and Registration Office (DARO), and all other related processes which took about seven months.
According to Yonas Belay, Executive Officer-Marketing & Business Development, Lucy has reinsured itself with – Africa–RE and other insurers so as to be able to spread risk across and increase its underwriting capability. 
Lucy Insurance has started operations by offering general services like property insurance, engineering insurance, pecuniary insurance and liability insurance and says will soon begin to provide life insurance.   
It is headquartered at Muja Building on Debre Zeit road, where it operates from for now until it attains the necessary funds to expand and open branch offices. To prepare for future expansion, the company is conducting the necessary research, said Alemseged Abraham, CEO.
Other two insurance companies, Debub Universal and Addis Insurance, are also about to join the industry, which will raise the number of companies operating in the country to 18.