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Tewodros Tilahun, who has been serving as the
managing director of Ethiopian Insurance Corporation
(EIC), the largest insurance company in the country,
commanding 80pc of the market share, resigned from
his post. Subsequently the State Financial
Institutions Agency (SFIA), which supervises
state-owned financial institutions, has now
appointed Tesfaye Alemu, his former deputy, as the
acting managing director.
EIC was initially established in 1976 after the Derg
military regime nationalised 13 insurance companies
owned by local and international investors.
Re-established with a capital of 61 million Br in
1994, the Company had total assets of 919.2 million
Br in 2005/06.
Tewodros Tilahun, who was the seventh managing
director of the giant company, sent his resignation
letter to the Board in December 2006.
Accepting the request of Tewodros, the Board
nominated Tesfaye, his deputy, as his successor.
SFIA then appointed the latter on July 2, 2007, as
acting manager of EIC.
The new appointee, Tesfaye, obtained his BA in
Business Administration 22 years ago from Addis
Abeba University (AAU) and his MA from London's City
University.
Tesfaye, who has served in the Ethiopian Institute
of Geological Survey for 11 years, has also been
serving EIC for more than 11 years in different
capacities, the last six years as deputy managing
director of marketing.
Though Tewodros, who headed the Insurance Company
for the past six years, was said to be suffering
from cardiac illness, he told Fortune that
his major reason for leaving the company is not his
sickness. Quitting his position, Tewodros
established his own consultancy firm, Diligence
Consultancy Service Plc.
"EIC is a healthy and strong company, and I have
exerted all my effort to bring it to this level,"
Tewodros told Fortune. "I believe EIC now
needs a manager who could add additional values to
the assets it already has. This is why I have
resigned."
The company Tewodros formed now gives consultancy
services on financial management, insurance
regulation compliance and financial statement
preparation.
EIC owns shares in the African Import and Export
Bank, African Reinsurance Corporation, Motor
Engineering Company of Ethiopia (MoENCO) and
Universal Investors SC.
In 2005/06, the company had secured 377.2 million Br
gross written premium and 221.5 million Br net
premiums. In the same year, EIC earned 29.7 million
Br from investment and other incomes and netted a 65
million Br gross profit. EIC, which competes with
seven private insurance companies, has 1,285
employees.
Fortune's
attempt to solicit comments from Tesfaye failed.
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