FREQUENTLY ASKED QUESTIONS (FAQs)
Here is a list of frequently asked questions by our stakeholders. If you do not find a specific question here that you would like to have answered, please, ask your question and notify us by clicking on Contact Us. We will reply your query as soon as possible.
1) How many shares does Ethiopian Re have and who are the main shareholders?
Ethiopian Re’s shareholding structure is a concoction of partnerships drawn from public and private sectors. The Company has diverse shareholders, which currently comprise of seven Banks, seventeen insurance companies, eighty individual coming from different walks of life and one trade union. The subscribed share capital of the Company is Birr 1 billion. For the other detailed information regarding major shareholders and the number of shareholders you have to get the latest report from the Corporation’s Share Register.
The legal minimum paid up capital to establish a reinsurance company in Ethiopia is Birr 500,000,000 (Birr Five Hundred Million) equivalent to USD$ 25 million. The subscribed capital of Ethiopian Re is Birr 1,000,000,000 (Birr One Billion) equivalent to USD50 million which by any standard is huge for a company just started operation.
2) When and where will be the next AGM ?
Ethiopian Re’s next AGM date and venue will be communicated through the press (using media of widest coverage and circulation). However, Ethiopian Re AGMs are normally held in the month of November-December every year.
Notice will be given to all shareholders in advance regarding annual general meeting of Ethiopian reinsurance share company in accordance with the provisions of articles 418 & 419 of the commercial code of Ethiopia, 1960, insurance corporate governance directive NO.SIB/42/2015 of National Bank of Ethiopia and article 9 and 10 of the company’s Articles of Association.
3) How can I take part in the AGM ?
All Ethiopian Re shareholders are eligible to attend the AGM annually and if they want to vie for directorship, they may do so as long as they have given due notice to the company of their intention to do so. Participation via proxy is also allowed. A shareholder entitled to attend and vote at the meeting and who is unable to attend is entitled to appoint a proxy to attend and vote on his or her behalf. A proxy need not be a member of the Company. To be valid, the form of proxy must be duly completed and signed by the member and lodged at the registered offices of the Company’s head office located at Africa Avenue, Kirkos Sub city, Woreda 9, Bahru Abreham Commercial Center, sixth floor, Board of Directors office, three days before the date of the general and /or extraordinary meeting. Shareholders are also advised to make sure a copy of official identification card or passport is brought to the meeting for registration.
4) How does one transfer a deceased shareholder’s shares to the beneficiaries?
This basically means the transfer of shares from the Estate of a deceased shareholder to a beneficiary. Please communicate Ethiopian Re office for detailed information.
5) What is the process for replacing lost share certificates?
• A request for replacement must be in writing
• All the required documents must be fulfilled.
• A new share certificate will thereafter be issued and forwarded to the shareholder
6) What is reinsurance?
"Reinsurance is the insurance of the risk assumed by the insurer", in other words the "insurance of insurers according to the principle of risk assumption and risk spreading".
7) Which kinds of risks need reinsurance?
If we consider the question of which risks are appropriate for or indeed even necessitate sharing with reinsurers, it is almost inevitable that we first think of major risks such as natural catastrophes (earthquakes, storms etc.) or major losses attributable to other causes, such as a plane crash. In principle, therefore, any insured risk can give rise to a need for participation of reinsurers. Please refer list of products and service of Ethiopian Re for detailed reference.
8) How is Ethiopian Re positioned in the worldwide reinsurance market?
Ethiopian Re would strive to secure business from domestic and international markets. In the short term however it primarily focuses on building strong market base in Ethiopia. Ethiopia will remain the major source of the Company’s business in the foreseeable future. However, the Company has a well thought plan to expand its reach to international markets with special focus on accepting business from African, Middle East and Asian markets on selective basis.
9) What Domestic Backings Ethiopian Re enjoy?
As per Directive of NBE No. SIB/44/2016, Ethiopian Re enjoys both treaty and policy compulsory cessions. Accordingly, any insurer in Ethiopia shall cede at least 25% of its treaty and 5% of each policy to Ethiopian Re. The Company has also a right of first refusal in all facultative placements.
For all other questions and queries please contact us using the details shown below:
City or Suburb: Bole Sub City
State or County: Africa Avenue near to Denbel City Center