According to reports, insurance companies in Ethiopia kept the country’s first domestic reinsurer, Ethiopian Reinsurance S.C afloat during its first year of operations after it reported a loss of 61 million Br (US$2.2mn). The reinsurance company’s latest report shows that insurers paid 332 million Br (US$12.1mn), which amounts to 5% of their premiums, in the past fiscal year to keep the reinsurer afloat after what appears to be a challenging first year of operations. The company’s Board of Directors, which is chaired by the former CEO if Ethiopian Insurance Corporation (EIC) – one of the local insurers that paid money to the reinsurer – Hailemichael Kumsa – said the loss is related to reserves, which reached 198 million Br (US$7.23mn). Despite the loss, Eteffa remains upbeat about the performance of the company in the years ahead. “There is a strong reason to be positive that significant improvement in results will be achieved in the years ahead,” said Eteffa.

Source: Ethiopian News January 02, 2018 15:56 UTC