Ethiopian Reinsurance (Ethio-Re), the first reinsurance company in Ethiopia, has increased its profit before tax by 45.3% to ETB616.7m ($3.98m) on the back of reinsurance revenue growth, for the financial year ended 30 June 2025 (FY2025).
Ethiopia's insurance sector is grappling with dual challenges on the regulatory and industry fronts, the President of the East African Insurance Organisation and chief executive of Nyala Insurance, Yared Molla, has said.
Investment income is expected to remain the primary contributor toward overall earnings for Ethiopian Reinsurance (Ethio Re), says AM Best. This reflects Ethio Re's low net underwriting leverage and the favourable interest rates offered by domestic issuers in the country.
The African Trade & Investment Development Insurance (ATIDI) has issued a 10-year Political Risk Insurance (PRI) policy to Sumitomo Corporation, a key Japanese partner in a consortium that invests in Safaricom Telecommunications Ethiopia (STE).
Amana Insurance is set to launch soon, marking a historic milestone in Ethiopia's financial sector as the country's first takaful company.
Switzerland-headquartered Pula Advisors has launched the Agricultural Insurance Consortium of Ethiopia (AICE) to scale index-based insurance to 3m smallholder farmers by 2026.
The InsuResilience Solutions Fund (ISF) has announced, in statements issued earlier this month, that it is supporting agricultural insurance in Ethiopia and Togo, as the agricultural sector is increasingly vulnerable to increasing climate-related risks such as droughts, excess rainfall, river flooding and extreme heat.
There is a critical need for the Ethiopian government to attach importance to the insurance industry, on a par with the attention given to banks and other financial institutions, senior executives of insurance companies have said. This is because the insurance market plays a vital role in supporting national projects and pushing economic growth.
State-owned Ethiopian Insurance Corporation (EIC) is expected to be among the first companies to be listed on the country's stock exchange which is scheduled to start operations before the end of this year.
Inflation is taking a toll on the insurance industry, particularly on motor insurance, which accounts for over 70% of the market.