Oromiya Insurance unveils ambitious plans

Oromiya Insurance Share Company, one of the youngest insurers made plans to double their capital at the 7th annual meeting held at Hilton Addis Ababa.
Requests to buy additional shares from the shareholders, strengthening the financial capacity of the company to compete in the industry, and to begin the construction of the headquarters were also addressed at the meeting.
“We needed to double our capital in order to put the company at the top insurers and able to engage to invest on reliable investment opportunities in the country,” according to the board chairman of the company Abera Bekele.
According to the company, the major motive for doubling the capital is to begin the construction of the new headquarter, before the deadline given from the city land management office that will end in September.
“Scaling up the capital is mandatory as we can’t build the headquarter with the existing capital” adds Abi Sano Board member of the company.
The company has already secured 3004sqm of land in front of Wabi Shebelle Hotel to build its head quarters at a cost of 2.2 billion birr. The 35 story building is expected to be awarded to a contractor soon.
Though, the company took ten years to reach the current 250 million birr paid up capital, shareholders unanimously agreed to increase the capital to 500 million birr in a year.
Shareholders mandated that the board of directors decide on a timetable to sell new shares and give them a value based on Commercial Law Article 54.
Oromiya Insurance was established in 2009 by the major shareholders of Oromiya Cooperative Bank, Oromiya International Bank and Oromiya Coffee Farmers’ Cooperative Union and over 878 shareholders.