Insurance business minimum paid up capital raised to 500 million birr

Yinager Dessie, Governor of NBE (Photo: Anteneh Aklilu)

The minimum paid up capital for insurance companies has expanded by 567 percent to 500 million birr for both general and long term insurance businesses. The minimum paid up capital of insurance companies as per the 2013 directive was 75 million birr (60 million birr for general insurance and 15 million birr for long term insurance) for both businesses.

As per the new directive issued on September 23 and became effective from September 15, signed by Yinager Dessie, Governor of NBE, indicated that the minimum paid up capital for general insurance will be 400 million birr and 100 million birr for long term (life) insurance business operation. The percentage for both has climbed by 566.6 percent compared with the 2013 directive.

Existing insurers are expected to fill the stated minimum capital by June 30, 2027, while those under formation are expected to reach the amount in seven years after the commencement of their operation.