Ethiopian insurance company to open branch in South Sudan

By Tesfa-Alem Tekle

September 1, 2010 (ADDIS ABABA) – The Ethiopian Insurance Corporation (EIC) says it will open its first foreign based branch in Juba town, making it the second state-owned financial firm to start business in the South Sudan’s capital after Ethiopia’s national commercial bank.

EIC Managing Director Yewondwosen Eteffa, presenting its annual report, said that his company is making final preparations to launch branch office in Juba in a bid to expand the market of the corporation.

Last year, a feasibility study returned from Juba with a promising assessment of the potential for expanding into south Sudan. Now the company says it has done a thorough study and is only expecting final approval before a new branch is opened.

The 34 year old, Ethiopian Insurance Corporation is the largest and oldest insurance firm in Ethiopia. It has a total of 39 branches across the nation.

According to the annual report, this fiscal year the corporations secured a profit of US$ 10.7 million. This was down from their forecast but still a 56% rise compared to last year, despite insurance claims paid to Ethiopian Airlines’ whose plane bound to Addis Ababa crashed in January this year while flying from Beirut.

According to the corporation’s website the Ethiopian Insurance Corporation provides more than 30 types of non life insurance policies which are used to cover property and liability risks. The Corporation says it revises its policies regularly and produces new policies based on the country’s economic development.

South Sudan is widely expected to vote to become an independent country in a referendum due to take place in January 2011.

(ST)