Tsehaye Hops to Shine On Small Fish in Insurance Sector addis fortune reports

The new kid hopeful to join the insurance sector, Tsehay Insurance Company (TIC) has announced it had collected 45 million Br from the sale of shares, exceeding its target of 40 million Br, at its founders general assembly held on Saturday September 3, 2011. At the meeting where 66pc of its shareholders were present, the insurance, which was established by five founding members in November 2011, announced that it currently has 107 shareholders and a subscribed capital of 522,700Br. The insurance had set a minimum purchase of 5,000Br and a maximum of one million Birr since it had started selling shares in February, 2011. Alemneh Baynes, owner of Alem International Plc, and Belay Kinde, a business man who had recently bought Ethiopia Hotel from the Privatization and Public Enterprise Supervision Agency, were the only people who had bought the maximum amount. Promoters stressed that they want to work with Small and Medium Enterprises (SMEs) going after the smaller fish rather than the big ones. "Our aim is to focus on the low income portion of the society and won't go after big businesses," Demsew Kassa, project manager of the insurance, told Fortune. "We will focus on farmers by giving crop insurance and life insurance." Shareholders held elections for the board of directors electing seven out of the nominated nine. Belski Bitew, manger of a private company, Amare Wale, promoter of the insurance, Tegenew Dres, promoter of the insurance, Mandefro Erku, former deputy manager of Nyala Insurance, Gete Zeleke, veterinary doctor, Atnafu Bogale, lawyer and consultant, and Worku Gidey were elected. These names are to be submitted to the National Bank of Ethiopia (NBE) for their approval. If these names are approved Tsehay Insurance Company will become the 16th privately owned insurance company. Board members will get five per cent dividend and a salary of 3,500Br for the board chairman and 3,000Br for board members, shareholders had decided. Although the insurance sector currently has 15 private insurance companies, the sector is dominated by the state owned Ethiopian Insurance Company (EIC).