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Ethiopia Nib Insurance profits increase 135 percent
By-election brings two individuals to board

By Andualem Sisay

Capital

Nib Insurance Company profits this year have increased by 135 per cent compared to last year’s, registering a gross profit of seven and a half million birr.

According to a statement the company sent to Capital on Saturday, December 1, 2007, Nib’s total underwriting surplus rose to 15.5 mln birr. “The highest contribution to the underwriting surplus came from pecuniary insurance which is 40 per cent, followed by Marine insurance at 10 per cent,” according to the statement.

At a closed general meeting of the shareholders, Nib Insurance Company conducted a by-election and elected two board members: Siraj Abdela and Musema Aman. This by-election was required to fulfill the new directive that prohibits one individual from serving a bank and an insurance company as board member at the same time.

As a result, the general assembly has appointed Tafesse Bogale as Chairman of Nib Insurance Company to serve for the remaining one year period, until the general election that is held every three years is conducted next year.

The company’s premium income in the reported period stood at 66.5 mln birr, which shows an increase of 42 per cent over the preceding year. Motor insurance premium contributed for 50 per cent of the total premium income.

Nib Insurance Company, which was established by 700 shareholders, started operations in May 2002. The number of shareholders and paid-up capital reached 800 and 30 mln birr respectively.