KAAMPAANII INSHURAANSII OROMIYAA W.A.

ኦሮሚያ ኢንሹራንስ ኩባንያ አ.ማ.

OROMIA INSURANCE COMPANY S.C.

ANNUAL
REPORT
20 16
17
 Baankii Hojii Gamtaa Oromiyaa
Bank of Oromia
የኦሮሚያ ኅብረት ሥራ ባንክ

Baankii Hojii Gamtaa Oromiyaa

Bank of Oromia
የኦሮሚያ ኅብረት ሥራ ባንክ
Interest
Interest

Herreega
Herreega Qusannoo
Qusannoo
DARGAGGOO
DARGAGGOO
የወጣቶች
የወጣቶች
Interest
የቁጠባ
የቁጠባ ሒሳብሒሳብ
YOUTH
YOUTH
Savings Account
Savings Account

Herreega Qusannoo
DARGAGGOO
የወጣቶች
የቁጠባ ሒሳብ
YOUTH
Savings Account
SIINQEE
SIINQEE
Herreega Dubartootaa
Herreega Dubartootaa
ሲ
ሲንቄ
ንቄ
የሴቶች
የሴቶች የቁጠባ
የቁጠባ ሒሳብ
SINQE
SINQE
ሒሳብ
Gaammee
Gaammee
Women Savings Account Herreega Ijoollee
Herreega Ijoollee
Women Savings Account
SIINQEE ጋሜ
ጋሜ
የልጆች
Herreega Dubartootaa የልጆች ሒሳብ
ሒሳብ
ሲንቄ
የሴቶች የቁጠባ ሒሳብ Gamme
Gamme
SINQE Gaammee
Junior
Junior Account
Account
Women Savings Account Herreega Ijoollee
ጋሜ
የልጆች ሒሳብ
Gamme
Junior Account

CBO cordially invites you to use our

brand new products with attractive features!
CBO cordially invites you to use our
brand new products with attractive features!
Committed to Breakthrough!
Committed to Breakthrough!
Committed to Breakthrough!
Africa Avenue,
Africa Avenue, Flamingo
Flamingo Area,
Area, Get
Get House
House Building
Building
+251 11
+251 11 515
515 0229,
0229, +251 11
+251 11 515
515 0489,
0489, 16936 Finfinne/Addis
16936 Finfinne/Addis Ababa
Ababa
Africa Avenue,
coopbank@[Link],
coopbank@[Link],Flamingo Area, Get House Building
[Link]
[Link]
+251 11 515 0229, +251 11
SWIFT Code:0489,
515
SWIFT Code: CBORETAA
CBORETAA16936 Finfinne/Addis Ababa
coopbank@[Link], [Link]
SWIFT Code: CBORETAA
 CONTENTS

CONTENTS
VISION, MISSION AND CORE VALUES OF THE COMPANY .................................................. 02

KEY PERFORMANCE INDICATORS ................................................................................... 03

THE COMPANY’S BACKGROUND .................................................................................. 04

NOTICE OF THE 8TH ANNUAL GENERAL MEETING ............................................................ 06

BOARD CHAIRPERSON'S MESSAGE TO SHAREHOLDERS ................................................ 08

AUDITOR'S REPORT .................................................................................................... 17

GENERAL AND LONG TERM BUSINESS STATEMENT OF FINANCIAL POSITION ............... 21
GENERAL AND LONG TERM BUSINESS STATEMENT OF COMPREHENSIVE INCOME AND OTHER
PROFIT AND LOSS ACCOUNT .................................................................................... 22
GENERAL AND LONG TERM BUSINESS CASH FLOW STATEMENT ................................... 23
STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY .................................................. 24
NOTES TO THE ACCOUNTS ........................................................................................... 25
ANNUAL REPORT 2016/17

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OROMIA INSURANCE COMPANY S.C. 01
 VISION, MISSION AND CORE VALUES

VISION
The Vision of Oromia Insurance
Company S.C. (OIC) is
“To Be a Leading Insurer”.

MISSION
The mission of OIC is rendering efficient insurance
services at competitive prices by using up-to-date
technology and trained manpower to fully satisfy all its
stakeholders.

CORE VALUES
Customers are our lifeblood
Employees are our most valued assets
We are committed to service excellence
We act with Honesty, Integrity and Loyalty
We are dedicated to new products development
ANNUAL REPORT 2016/17

We Uphold professionalism

02 OROMIA INSURANCE COMPANY S.C.

 KEY PERFORMANCE INDICATORS

333
NUMBER OF
83.9Bn
SUM INSURED OF
41
COVERED RISKS
MARKET OUTLETS
EMPLOYEES

362M
GROSS WRITTEN
213.5M 43M
UNDERWRITING
GROSS CLAIMS PAID
PREMIUM RESULT

41M
GROSS PROFIT
68.32%
LOSS RATIO
666.6M
TOTAL ASSETS

291
EARNINGS PER
4.88%
MARKET SHARE
SHARE
ANNUAL REPORT 2016/17

OROMIA INSURANCE COMPANY S.C. 03

 THE COMPANY’S BACKGROUND

THE COMPANY’S BACKGROUND

Oromia Insurance Company S.C was established The Company has crafted suitable mission that
and licensed by the National Bank of Ethiopia is customized to address the acute needs of its
on 26th January 2009 to engage in general customers and has also developed reliable and
insurance business. continuously improving strategic plans which
will help to ensure the realization of its vision.
It commenced its operation on 9th February
2009 .The Company was established by 540 Taking into consideration the needs of
founding shareholders with a paid-up capital those low income farmers who became
of Birr 26 million and a subscribed capital of shareholders of the Company through their
Birr 85 million. During the reporting period, farmers’ cooperative unions, OIC also launched
the number of shareholders reached 840, the Microinsurance products (crop & livestock) in
paid up capital rose to Birr 155.2 million and 2010, i.e., about a year after its establishment.
the subscribed capital also rose to 250 million. Life Insurance operation then followed in 2012.
This clearly demonstrates the fact that the The Company already achieved most of the
Company commenced its operation with a targets set for its first strategic plan and is now
strong and reliable financial capacity, being implementing its second strategic plan that
the first of its kind to mobilize such a huge will serve until 2020/21 budget year.
amount of paid-up capital in the country’s
insurance industry. Moreover, the diversity Currently, OIC has 38 full-fledged branch
of its shareholders manifests the Company’s offices and 3 contact offices throughout the
strong social base which includes 1,600,000 country. It also works with a number of sales
low income farmers through their farmers’ agents, all insurance brokers as well as banks
cooperative unions. in the country.
ANNUAL REPORT 2016/17

04 OROMIA INSURANCE COMPANY S.C.

 BOARD OF DIRECTORS

ELIAS GENETI
Chairperson
ASSEFA TOLERA (DR) ABIE SANO
Director Director

WOLDE BULTO SIMEGN KUMA DESALEGN JENA

GENA
Director Director Director
ANNUAL REPORT 2016/17

GUTEMA DIBABA GURARA GEBISA TADESSE ADUGNA

Director Director Director

OROMIA INSURANCE COMPANY S.C. 05

 NOTICE OF THE 8TH ANNUAL GENERAL MEETING

NOTICE OF THE 8TH ANNUAL GENERAL

MEETING
In accordance with the provision of Article 418 & 419 of the Commercial Code of
Ethiopia and Article 7.3 (c) of the Company’s Articles of Association (as amended),
notice is hereby given to all Shareholders that the 8th Annual General Meeting of
Shareholders of Oromia Insurance Company S.C will be held on Saturday, December
2/2017 starting from 8:00 A.M (Morning) at Hilton Hotel, Finfine to transact the
following business:-

Provisional Agenda for the 8th

Annual ordinary General Meeting:
1. Consideration and approval of provisional agenda items;
2. Consideration of Share transfers;
3. Consideration of the 2016/17Annual Report of Board of Directors;
4. Consideration of the 2016/17Annual Report of External Auditor;
5. Deliberation on and approval of items No. 3&4 above;
6. Consideration and approval of proposal on the manner of allocation and sharing
of the profit for F.Y 2016/17;
7. Hearing of the Report of Boards Nomination committee and conducting Election
of Board members;
8. Approval of the minutes of the meeting; and
9. Any other Business.
Note
• Shareholders who might not be able to attend the meeting in person, may fill
proxy forms three working days prior to the meeting at the Head Office of the
Company located at Africa Godana, near Olympia Square, or participate in the
meeting through their respective representatives bearing dully registered and
authenticated letter (s) of power of attorney issued through Notary office.

• Shareholders or proxies or Representatives bearing dully registered and

authenticated letters of power of Attorney may participate in the meeting
producing /submitting original /copies of:-

 Renewed ID Cards, or passports of both the representer and the represented

ANNUAL REPORT 2016/17

 Letters of power of attorney

By order of the Board of Directors of

Oromia Insurance Company S.C.
November 5, 2017
06 OROMIA INSURANCE COMPANY S.C.
 EXECUTIVE MANAGEMENT TEAM

ASFAW BENTI
CEO
BERHANU DEBELA TILAHUN TADESSE
Executive Officer, Chief Internal
Operations Auditor

MOSISA ETEFA BERHANU DINKA GETAHUN TOLESSA

Manager, Legal Services Manager, SP & Manager, Life
Marketing Department Insurance Department

SAMUEL TESFA DANIEL NEGASSA ALEMAYEHU DORSIS

A/Manager, Finance & A/Manager, HR & FM A/Manager, IT
Investment Department Department Department
ANNUAL REPORT 2016/17

MELKACHEW TEMESGEN ALEMU EJIGU

A/Manager, Microinsurance Manager, Compliance &
Department Risk Management
OROMIA INSURANCE COMPANY S.C. 07
 BOARD CHAIRPERSON'S MESSAGE TO SHAREHOLDERS

ELIAS GENETI
Chairperson, Board of Directors

O
n behalf of the Board of Directors of While the Board of Directors’detailed annual report,
Oromia Insurance Company (S.C) and on which deals with the operating environment,
my own behalf, I heartily welcome you all operational and financial performances as well as
to the 8th Annual General Meeting of Shareholders other activities of the Company, are contained in
of our Company. the following pages, let me give you just highlights
of the year’s performances in very concise manner.
I sincerely feel honored and privileged for having
been empowered to once again stand in front The operating environment during the period
of you on this occasion, to present the annual under review was very challenging due to the
performance report of our Company for the fiscal persistent suicidal premium cut competition
year ended on June 30, 2017. among the industry’s players and the civil unrest
that engulfed the country at large and Oromia
Obviously, the Company’s Board of Directors as
Regional state in particular. Despite these
a team always enjoyed your unwavering support
challenges, the Company managed to register
and encouragement. The Board of Directors in
positive results on its operational performances.
turn, also did everything possible to support and
encourage the management and staff members of Accordingly, the Company achieved Gross Written
the Company to plan and achieve results under all Premium (GWP) of Birr 355,613,218 from non-life
sorts of challenging circumstances. Such cascaded
ANNUAL REPORT 2016/17

classes of business (excluding Microinsurance)

chain of support and encouragement remained during FY 2016/17 while that of the FY 2015/16
to be our common source of energy driving was Birr 331,725,977.00
us all in unison towards the realization of our
Company’s goal. With such driving spirit in mind Microinsurance also continued to expand during
and determined action, our Company once again the period under review. The Company managed
managed to successfully conclude its 8th fiscal to earn premium income of Birr 2,431,866.00,
year’s operation. which showed a growth of 10.5% as compared
08 OROMIA INSURANCE COMPANY S.C.
 BOARD CHAIRPERSON'S MESSAGE TO SHAREHOLDERS

with that of last year’s corresponding period, The Company’s market share among the sixteen
which was Birr 2,200,486.00. Though this seems privately owned direct insurers was 7.55% then.
to be insignificant in terms of contribution to
the Company’s premium income, the Company Distinguished Shareholders of Oromia
is determined to continuously expand such Insurance Company S.C
insurance coverage to much larger territorial areas
since this clearly witnesses OIC's commitment in Please allow me to take this opportunity to thank
discharging its corporate social responsibilities fellow Directors as well as the Management and
by serving the low-income people of farming
all staff members of OIC who made this success
and pastoral rural communities. Such a service
to unfold. My thanks also go to the Supervisory
also helps the Company to connect to very large
mass base and eventually enables it to dominate Authority, i.e., the National Bank of Ethiopia, for its
the insurance industry’s market share in the long all-rounded support rendered to OIC and to our
run. Microinsurance played and is still playing reinsurers, intermediaries and all other business
significant role in promoting OIC in ample ranges partners for their persistent backings.
both locally and overseas. This surely is our
potential Gold Mine and hence we must continue Ladies and gentlemen,
paving the road that takes us to that goal.
Your Board of Directors collectively offers its
The Company registered Gross Written Premium
deepest gratitude to you all, the esteemed
of Birr 4,672,857.00 from long term insurance
business, i.e., life insurance, during the period shareholders, for investing in and establishing the
under review which showed a growth of 20.2% Company we all take pride in, and above all, for
as compared with that of the previous fiscal year. your unreserved support and patronage.

Overall, Oromia Insurance Company S.C. And now, may we all shareholders raise our
registered a profit before tax of Birr 41,010,881.00
voices once again to express in unison our sincere
during the reporting period, which showed
appreciation and gratefulness to our esteemed
growth of 22.8% as compared with that of the
previous year’s Birr 33,395,543. Net profit after customers who have continuously vested great
legal and general reserve as well as directors’ confidence in Oromia Insurance Company S.C. and
share on profit and tax deductions amounted to shown undivided loyalty by insuring their risks
Birr 33,417,325.00 with us.
Earnings per share stood at Birr 291 showing
Finally, I now submit to you Shareholders of the
a decrease of 14% from that of the previous
year, which was Birr 337.76. This resulted due to Company, the Board of Directors’ report and the
substantial increase in the Company’s paid-up Audited Financial Statement of Oromia Insurance
capital from Birr 115,180,000.00 at the end of the Company S.C. for the F.Y ended on 30th June, 2017
preceding fiscal year to Birr 155,151,000.00 at end in accordance with articles 418 and 419 of the
of the reporting period.
Commercial Code of Ethiopia 1960 and Article7.3(c)
Despite all the challenges faced, the Company’s of the Company’s Articles of Association for your
assets have now grown considerably; and its consideration, deliberation and approval or
reaches (market outlets) have also expanded as otherwise, as found appropriate.
required. As a result, OIC has managed to command
reasonable market share from the Country’s Thank you all.
insurance industry and also to register reasonable
ANNUAL REPORT 2016/17

profit. During the period under review, the state

owned insurer, Ethiopian Insurance Corporation
still leads all direct insurers of the Country with a
market share of 36.5% and 28.9% for Non-life and
Life businesses, respectively. During the period, Elias Geneti,
OIC ranked 8th among the country’s direct insurers
Chairperson, Board of Directors & of the Annual
by registering a combined market share of 4.88 %.
General Meeting
OROMIA INSURANCE COMPANY S.C. 09
 REPORT OF THE BOARD OF DIRECTORS

1. REPORT OF THE BOARD OF DIRECTORS short and medium term with huge investments
in infrastructure and the development of
The Board of Directors of Oromia Insurance industrial parks, prioritized to ease bottlenecks
Company S.C. is pleased to present its 8th annual to structural transformation, which will still
report together with the audited financial have to take shape with the industry playing a
accounts for the year ended on 30th June, 2017. significant role in the economy.
Review of the business environment, as well as 1.2 The Global Insurance Industry Trends
summaries of the Company’s operational and
financial performances are given herein below According to Swiss re report, the total global
for the AGM’s deliberation and consideration. direct insurance premiums written grew by
3.1% in 2016; down from the 4.3% growth
1.1 The Global Business Environment in [Link] slowdown was mainly driven by
According to the Swiss re report the global considerably lower growth in advanced markets.
economy grew moderately, with real growth Robust premium growth in China supported the
domestic product (GDP) up by 2.5% in 2016. emerging markets which otherwise were also in
The GDP in the advanced economies remained slowdown mode. In the same manner global life
below the pre-financial crises average, but premium growth slowed to 2.5 %, from that of
was slightly above the annual average of the 4.4% in 2015 mainly due to contraction in the
previous 10 years. Emerging market growth advanced market.
picked up only marginally, and was still far The global non-life premium growth slowed to
below the 10 year average. 3.7% due to weakness in the advanced market.
In 2016, growth in Africa was the lowest since The insurance market in Africa is under-
the early 1990s (1.8%). The main reasons were developed, largely because most Africans
crisis in the three largest sub-Saharan African simply cannot yet afford it. Access to insurance
economies caused by low commodity prices, products only starts to increase quickly in the
tight financing conditions, and severe drought upper middle income groupings, with most
in southern and eastern Africa, as well as lack of Africans still just struggling to meet their basic
economic reforms. Non-commodity exporting food and other day-to-day needs.
countries, on the other hand, continued to grow 1.3 Ethiopian Insurance Industry
rapidly in Africa.
During the period under review the number of
The Ethiopian economy, as analyzed by regional direct insurers operating in the country stood at
as well as global economic journals and reports 17, of which one is owned by the government
is said to have experienced strong and broad while the remaining 16 are privately owned. In
based growth over the past decade, averaging terms of their engagement, ten of these insurers
10.8% per year as compared to the regional are composite, providing both life and non-life
average of 5.4%. Expansion of services and insurance, while the rest of them are engaged
agricultural sectors are said to have accounted on non-life business only. Four insurers in the
for most of this growth, while the performance country are also engaged in Microinsurance
of manufacturing sector was said to have been business.
relatively modest. The Country is currently
implementing the second phase of its Growth During the period under review, the total
and Transformation Plan (GTP II). GTP II, which premium written by these direct insurers
runs from 2015/16 to 2019/20 aims to continue reached about Birr 7.5 billion out of which about
improvements in physical infrastructure through 7.2 billion is from nonlife business while the
public investment and projects transforming balance is the share of life insurance. The state
owned insurer, Ethiopian Insurance Corporation,
ANNUAL REPORT 2016/17

the country into a manufacturing hub. The

overarching goal is to turn Ethiopia into a lower- lead the country’s direct insurers with a lion’s
middle-income country by 2025. market share.

The agriculture, services and industry sectors During the reporting period, the country’s
accounted for 38.8%, 46.6% and 15.2% of the insurance industry registered a growth of
real GDP, respectively. Public investments are 17% on non-life classes of business and 8.1%
expected to continue driving growth in the on life insurances as compared with that of

10 OROMIA INSURANCE COMPANY S.C.

 REPORT OF THE BOARD OF DIRECTORS

the preceding F.Y. Even though the overall against the plan. This was, however, greater
performance of the industry is encouraging, than that of the preceding year’s premium
there were and still are challenging threats, like production by 7.36%. Political unrest, economic
the deterioration of professional practices and slowdown and underwriting measure taken by
unhealthy business competition that is confined the Company were some of the factors which
only to reduction of premium rate. Shortage of contributed for the underperformance. The
insurance professionals, souring cost of goods gross written premium per classes of business in
and services including office rentals are also comparison with the budget set for the period is
among the problems. The absence of well- shown in Table 1.
coordinated information exchange system Table 1: Gross Written Premium vs. Budget
within the industry is also a serious challenge.
Budgeted Actual
As at June 30, 2017, OIC had 38 branches and S.N
Class of
Premium Premium in
Achievement Variance in
Business in /%/ Birrr
three contact offices operating at different In Birr Birr
locations in the country, out of which 19 1 Motor 296,050,000 252,002,309 85.29 -43,534,183
branches are located in Finfine. As can be
2 Marine 25,580,000 16,603,946 64.91 -8,976,054
seen from the details below, the Company
registered Gross Written Premium (GWP) of Birr 3 Pecuniary 27,720,000 32,758,582 118.65 5,171,052

358,045,084.00 from non-life classes of business 4 Fire 18,930,000 20,422,849 107.23 1,368,171

(including Microinsurance) and Birr 4,672,857.00 5 Engineering 16,790,000 16,781,458 99.97 -4,429
from life insurance. As a result, Oromia Insurance 6 GPA 6,930,000 10,149,521 146.46 3,219,521
Company S.C. managed to secure 4.88 % of the
7 Workmen’s 4,000,000 5,895,310 147.39 1,895,746
Ethiopian direct insurers’ market share. The
8 Liability 4,000,000 999,243 24.98 -3,000,757
Company’s market share among the sixteen
privately owned insurance Companies was Total 400,000,000 355,613,218 89.00 -43,860,931

7.55%.
[Link] Microinsurance
1.4 The Company’s performance
It was planned to generate gross written
1.4.1 Gross Written Premium premium income of about Birr 3,000,000.00
from the operation of Microinsurance business
The total gross written premium of the during the period under review while the actual
Company at the end of June 30, 2017 was Birr production was only Birr 2,431,866.16, i.e., 81%
362,717,941.22. Its breakdown is shown as accomplishment. 10.5% growth was, however,
follows: registered as compared with that of last year’s
corresponding period.
[Link] Non-Life Insurance Businesses
Excluding Microinsurance In general, the Non-life classes of business
including Microinsurance portfolio mix are
The total number of policies issued on these
shown in Figure 1 below.
classes of business as new and renewed by the
Company during the period under review were Figure 1: All Non-Life Classes of Insurances
55,588. Out of these the top three classes of Portfolio Mix
business were Motor, Fire & Lightning as well as
Marine with 34,189, 10,270 and 4,885 policies,
respectively. The Company provided cover for
total sum insured of Birr 83,862,305,138.00 on
these classes of business.

The Company planned to generate Gross Written

Premium (GWP) of about Birr 400,000,000.00
ANNUAL REPORT 2016/17

from these classes of insurance business during

the period. It, however, managed to generate
Birr 355,613,218, which was 89% achievement

OROMIA INSURANCE COMPANY S.C. 11

 REPORT OF THE BOARD OF DIRECTORS

The Company’s non-life insurance businesses review was Birr 208,876,315, which showed
Gross Written Premium (GWP) growth trend significant decrease as compared with that of
for the past 5 consecutive years is as shown in last year corresponding period which was Birr
Figure 2 below. 261,264,262. The reduction in gross incurred claim
was mainly due to underwriting measure taken by
Figure 2: Last Five Years GWP Growth Trend of the the Company on risk prone vehicles like Sino Truck,
Non-life Insurance Business Ambulances, Toyota Vitz, Mini buses, pick-ups &
In Million Birr
Isuzu trucks.
400 The gross claim paid during the FY was
350 Birr 213,552,692.00 while that of last year’s
300
corresponding period was Birr 170,775,816.00.
250
200 Gross outstanding claims reserve held as at 30th
150 June, 2017 was Birr 228,802,457.11. This showed
100 a decrease of Birr 2,545,884.89 as compared with
50 that of last year’s corresponding period.
[Link] Microinsurance
Under Weather Index Crop Insurance, claims
[Link] Life Insurance Business
amounting to Birr 380,000.00 were paid to four
During the period under review, the Company hundred farmers of Adami Tullu Jido Kombolcha
planned to generate Gross Written Premium of district as a trigger point was reached for a rainfall
Birr 5,000,000.00 from Life Insurance business. deficit at a flowering stage of the crops. In the same
The achievement was, however, Birr 4,672,857.06 manner, claims amounting to Birr 561,841.00 were
only, which corresponds to 93% achievement. also paid for Vegetation Index Crop Insurance. In
This, however, showed a growth of 20% as general crop insurance claims amounting to Birr
compared with that of last year’s corresponding 941,841.00 were paid to 4,235 farmers living in the
period. rift valley areas of East Showa and West Arsi Zones
during the year under review.
Figure 3: Life Insurances Portfolio Mix
For the Long Rain Long Dry (LRLD) 2016, claims
amounting to Birr 293,880.00 were lodged and
paid to 285 pastoralists of three woredas (Moyale,
Miyo and Dugda Dawa). In the same manner,
claims amounting to Birr 1,595,990.00 were also
lodged and paid to 1,474 pastoralists who were
policyholders of Short Rain Short Dry (SRSD)
2016 contract window. During the period under
review, a total claim amount of Birr 1,889,870 was
paid to 1759 pastoralists on index based livestock
insurance.
In general, total claims amounting to Birr
As shown in Figure 3 above, Individual 2,831,730.61(both on crop and livestock insurance)
Endowment, Group Medical and Group Term were, therefore, paid in respect of Microinsurance
Life Assurances took 6%, 44% and 50% share business during the period under review. Severe
of the total life assurance premium income, drought known as El Nino was the cause for such
respectively. big claims during the period.

1.4.2 Claims There wasn’t any outstanding claim on this

class of insurance as at end of June 30, 2017.
[Link] Non-Life Insurance Businesses The overall claims ratio for all non-life class of
Excluding Microinsurance
ANNUAL REPORT 2016/17

business including Microinsurance, during the

The total number of claims lodged during the period under review was 68.32%. That of last
period under review on non-life insurance classes year’s corresponding period was 77%. During
of business, excluding Microinsurance, was 5,789 the reporting period the highest claims ratio was
out of which 4,969 (86%) were on motor insurance registered for Microinsurance followed by Motor
classes of business. classes of business which were 176.56% and
The gross claims incurred for the period under 85.70%, respectively. The details are shown in
Table 2.
12 OROMIA INSURANCE COMPANY S.C.
 REPORT OF THE BOARD OF DIRECTORS

Table 2: Claims Ratio of Non-life Insurance

Businesses

Net Claims Ratio

Net Earned premium in Net Incurred Claims in Birr
Class of Business 2016/17
Birr (2016/17) (2016/17) 2015/16 in %
in %
Engineering 8,583,039.00 3,991,336 46.5 57.15
Fire 9,700,172.45 1,448,339 14.93 21.17
Liability 430,275.96 20813.41 4.84 -17.26
Marine 11,911,157.20 1,911,862 16.05 65.85
Motor 179,864,529.26 154,141,005 85.7 91.53
Accident 9,279,275.26 3,106,035 33.47 45.95
Pecuniary 17,738,969.31 -1,849,266 -10.42 6.81
Workmen’s 5,686,455.11 1,601,302 28.16 51.43
Micro 1,641,727.65 2,898,843 176.57 41.5
Total 244,835,601.00 167,270,269.00 68.32 77

[Link] Life Insurance [Link] Investment

The total claims incurred during the year under Besides short-term investments in banks and
review in respect of Life Insurance amounted fixed time deposits, the Company also invested
to Birr 2,406,123.00. During this period, claims in equity shares of several business entities.
amounting to Birr 2,346,629.44 were paid
The Company’s total equity investment as at
as medical claim, maturity value claim and June 30, 2017 reached Birr 66,859,746.00. This
surrender value claim. Outstanding claims on showed 13.9% growth as compared with that of
life classes of business as at end of June 2017 last year’s corresponding period, which was Birr
was Birr 59,493.65. 58,691,748.00
1.4.3 Reinsurance During the fiscal year ended on June 30, 2017
the Company earned Birr 41,021,503.00 from
During the reporting period, the company’s
investment and other incomes. This indicates
gross premium cession to reinsurers grew
an increment of 7.4% as compared with that of
to Birr 87,318,940.00. This indicates 24.4%
last year’s corresponding period. From the total
of the GWP. Last year’s ceded premium was
investment and other incomes for the period
Birr 76,170,360.00 (22.80% of the GWP of Birr under review the respective shares of interest
333,984,681.09). The current period’s premium income, dividend income and other incomes
cession showed an increment mainly due to the were 95.5%, 2.2% & 2.3%, respectively.
mandatory cession of 5% of all premium income
on all class of business GWP’s as of July 1, 2016 [Link] Total Assets and Liabilities
to the newly established Reinsurer, i.e., Ethio-Re.
The total asset of the Company as at 30th
From such premium cessions the Company June 2017 grew to Birr 666,645,319.00 from
earned premium commission and profit that of the preceding year, which was Birr
commission of Birr 19.4 million altogether 597,018,297.00. Likewise, total liabilities rose
during the period under review. from Birr 433,329,502.00 of the preceding F.Y to
Birr 451,648,088.00 as at end of the reporting
ANNUAL REPORT 2016/17

1.4.4 Corporate Financial Performance period.

[Link] Capital [Link] Administrative and General Expenses

The total capital of the Company was Birr The company’s administrative and general
163,688,795.00 as at the end of the preceding expenses for the fiscal year that ended on 30th
FY. It now grew by 31.4%, i.e., to Birr 214,997,230 June 2016 were Birr 63,170,141. This increased by
as at June 30, 2017. 34% i.e. to Birr 84,731,288.00 during the period
OROMIA INSURANCE COMPANY S.C. 13
 REPORT OF THE BOARD OF DIRECTORS

under review. The major reasons for the increase During the year under review, 186 staff
were rental costs related to the relocation of members attended various types of trainings,
Claims Division by acquiring additional space i.e., organized in house, elsewhere domestically,
from OIB, the acquisitions of recovery yard and as well as abroad. Out of these, 17 staff members
Branch offices which, on average, increased by attended trainings and seminars organized
25% as compared with that of the preceding abroad while the remaining staff members
year’s corresponding period. attended those organized in-house and
elsewhere in the country.
It should be noted here that the administrative
and general expense ratio of the Company (i.e., The Company’s overall employee turnover
administrative and general expenses divided during the year under review was 12% while that
by net earned premium) was 34.6% during the of last year’s corresponding period was 10%.
reporting period.
1.4.7 CHALLENGES AND PROSPECTS
[Link] Profitability
[Link] Challenges
During the fiscal year under review, the Company
The competition in the market, as has always
earned profit before tax of Birr 41,010,881.00
been the case, was characterized by continued
which is greater than that of the previous year’s
reduction in premium rates coupled with
corresponding period by 22.8%. This in turn
compromises in underwriting principles.
generated net profit of Birr 33,417,325.00 which
Relaxation of terms and conditions also
ultimately produced earnings per share of Birr
resulted in diminishing bottom line result
291.00 for Birr 1,000.00 par value. Earnings per
from operations. The unhealthy price based
share of last year’s corresponding period were
competition among the industry actors, the
Birr 337.76. This resulted mainly due to the
scarcity of skilled and experienced manpower,
substantial increase in the Company’s paid up
imbalance in portfolio mix and ever rising claims
capital from Birr 115,180,000.00 as at end of the
costs, particularly in motor class against the
preceding F.Y to 155,151,000.00 as at end of the
back drop of ever escalating business running
reporting period.
costs, claims in particular, are all tough frontiers
1.4.5 BRANCHES’ EXPANSION in challenges facing the industry.

During the period under review two new [Link] Prospects

branches were opened, i.e., at Burayu and Laga
The economy, with all other things remaining
Tafo while Mettu Contact office was upgraded
unaltered, is expected to continue growing
to branch level. As at June 30, 2017, the
at decent rate and there would probably
Company’s market outlets, therefore, reached
be better performance in the national
41, comprising of 38 full-fledged branches and 3
economy as stipulated in GTP II. One of the
contact offices. The Company’s branch networks
new developments at national level is the
are situated at strategic locations in the country.
reorientation in the strategic focus and growth
1.4.6. HUMAN RESOURCE direction of the country following the major
shift from agricultural lead to the manufacturing
The Company’s total number of employees as at sector as cornerstone of fast economic growth
June 30, 2017 was 333, out of which 195 were for Ethiopia. We believe that this change in
male and 138 female. This showed an increase growth strategy will bring additional potentials
of 11.7% as compared with that of the previous for our industry.
year’s corresponding period. This resulted due
to increase in the Company’s activities and due We also believe that the special attention being
ANNUAL REPORT 2016/17

to the increase in its branches. Out of the total given to Microinsurance business will bring
employees, 26 are definite period employees about reasonable rewards to the Company in
while the remaining 307 are indefinite period the long run.
employees. Based on the major categories of 1.4.8 VOTE OF THANKS
jobs, 61 employees are deployed on managerial
positions, 184 on professional, and 88 on non- On behalf of you, all shareholders of OIC, and
clerical positions. on our own behalf, we the Board of Directors
14 OROMIA INSURANCE COMPANY S.C.
 REPORT OF THE BOARD OF DIRECTORS

express our deepest gratitude to all esteemed roles in the Company’s success and growth. They
customers of the Company for their unreserved strongly help in identifying the needs of the
support and patronage. All shareholders of
the Company also deserve special recognition insuring public on the one hand and serve as our
for your investment, persistent backing and ambassadors on the other. The commendable
patience. We loudly offer you big thanks. result achieved would not have been possible
We seize this opportunity to also thank the without their demonstrated commitment and
National Bank of Ethiopia for its guidance and very strong team spirit.
continued cooperation.
Thank You!
The Board of Directors also wishes to record
its appreciation for the relation the Company
enjoys with its reinsurers as well as for reciprocal
business relations developed with both
domestic and international intermediaries and
companies.
Elias Geneti
Special credit is also due to the management, all
frontline officers and staff members of OIC who Chairperson, Board of Directors & of the Annual
have played and will continue to play pivotal General Meeting

ANNUAL REPORT 2016/17

OROMIA INSURANCE COMPANY S.C. 15

 KAAMPAANII INSHURAANSII OROMIYAA W.A.
ኦሮሚያ ኢንሹራንስ ኩባንያ አ.ማ.
OROMIA INSURANCE COMPANY S.C.
Where Passion, Experience and Dedication meet!

ALL INSURANCE SERVICES UNDER ONE ROOF:

LIFE
NON -LIFE
MICROINSURANCE &
AGRICULTURAL INSURANCE

Tel: +251 11 557 2121 | Fax: +251 11 557 2122 | [Link]: 10090, Addis Ababa, Ethiopia
Email: oromiainsurance@[Link] | website: [Link]
 AUDITOR’S REPORT

R ' S
T O
T
I
AUD
E P O R
R
REPORT
ANNUAL
ANNUAL 2016/17
2016/17
REPORT

OROMIA INSURANCE COMPANY S.C. 17

OROMIA INSURANCE COMPANY S.C. 17
 AUDITOR’S REPORT

ደገፋ ለሜሣ የኦዲት አገልግሎት ሁለት DEGEFA LEMESSA AUTHORIZED AUDITORS

ዓይነት ኃላፊነት ያለበት የሽርክና ማህበር LIMITED PARTNERSHIP CHARTERED
CERTIFIED ACCOUNTANTS
Tel: +251-011-466 11 57
Mobile: +251-091-122 32 10 [Link]: 8118
Fax: +251-011-466 15 36 +251-091-198 35 72 E-mail: [Link]@[Link]
Addis Ababa Ethiopia

INDEPENDENT AUDITORS’ REPORT TO THE SHAREHOLDERS OF OROMIA

INSURANCE COMPANY SHARE COMPANY
We have audited the accompanying financial statements of OROMIA INSURANCE COMPANY
SHARE COMPANY which comprise the statement of financial position as at 30 June 2017, the
statement of comprehensive income and statement of cash flows for the year then ended and
summary of significant accounting policies and other explanatory information.

OPINION

In our opinion, the financial statements give a true and fair view of the financial position of
OROMIA INSURANCE COMPANY SHARE COMPANYas at 30 June 2017 and of its financial performance
and cash flows for the year then ended in accordance with its accounting polices applied on a
consistent basis.

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for
the Audit of the Financial Statements section of our report. We are independent of the company
in accordance with the International Ethics Standards Board for Accountants’ code of Ethics for
Professional Accountants (IESBA Code) together with the ethical requirements that are relevant
to our audit of the financial statements in Ethiopia, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the IESBA Code. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
ANNUAL REPORT 2016/17

18 OROMIA INSURANCE COMPANY S.C.

 AUDITOR’S REPORT

KEY AUDIT MATTER

Key audit matters are those matters that, in our professional judgment, were of most significance
in our audit of the financial statements of the current period. These matters were addressed in the
context of our audit of the financial statements as a whole and in forming our opinion thereon; we
do not provide a separate opinion on these matters. We have determined the matters described
below to be the key audit matters to be communicated in our report.

KEY AUDIT MATTER HOW OUR AUDIT ADDRESSED THE KEY AUDIT
MATTER
a) Evaluating the adequacy of liabilities/
insurance fund held by the company, We have checked the arithmetic accuracy of the unearned
i.e., outstanding claims, provision for premium in accordance with the 1/24th method set by
unexpired risk/unearned premium NBE and found it out to be correct. We have also checked
and other technical reserves required the correctness of 10% technical provision required by
by the National Bank of Ethiopia (NBE). NBE which is we also found to be in order.

b) The company’s incurred claim shown The explanations we obtained from the management
in the revenue account decreased of the company are: First, management has taken
significantly as compared to last underwriting measures which resulted in a significant
year, i.e., the decrease has been Birr reduction of incurred claims as compared to last year.
58,253,563. Second, provisions that have been barred by time have
been written back. Third, provisions held especially
in relation with performance bond guarantees were
canceled after obtaining legal opinion from the legal
services of the company, which is around eight million, as
these provisions are no longer genuine [Link] verify
the managements assertions as explained above we have:
Tested the propriety of writing back and writing down of
provision for outstanding claims and found out that the
management’s assertions are correct;
We have also observed that the management avoided
risky business lines, especially motor, which contributed
in a significant reduction of incurred claims;
We have also checked that provisions held for
performance bond were cancelled in line with the legal
opinion obtained from the legal services of the company.
ANNUAL REPORT 2016/17

OROMIA INSURANCE COMPANY S.C. 19

 AUDITOR’S REPORT

RESPONSIBILITIES OF MANAGEMENT AND THOSE CHARGED WITH GOVERNANCE FOR THE

FINANCIAL STATEMENTS

Management is responsible for the preparation and fair presentation of the financial statements
in accordance with the accounting policies of the company and for such internal controls as
management determines is necessary to enable the preparation of financial statements that are
free from material misstatements whether due to fraud or error.

In preparing the financial statements management is responsible for assessing the company’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern
and using the going concern basis for accounting unless management either intends to liquidate
the company or to close operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the company’s financial reporting
process.

AUDITORS RESPONSIBILITY FOR THE AUDIT OF THE FINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about whether the financial statements as
a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but
is not a guarantee that an audit conducted in accordance with ISAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these financial statements.

Degefa Lemessa Authorized Auditors

Limited Partnership, Chartered Certified Accountants
Addis Ababa October 17, 2017
ANNUAL REPORT 2016/17

20 OROMIA INSURANCE COMPANY S.C.

 AUDITOR’S REPORT

OROMIA INSURANCE COMPANY S.C

GENERAL AND LONG TERM BUSINESS STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2017
2016
NOTE BIRR BIRR BIRR
ASSETS EMPLOYED
Cash on hand and at bank 5 63,265,541 75,705,471
Fixed time deposits 6 400,755,316 356,165,635
Due from reinsurers 36,177,151 34,482,299
Debtors 7 52,675,913 40,813,428
Stock of stationery items and tyres 2,041,043 863,082
Statutory deposits 8 17,277,000 12,692,400
Investments 9 66,859,746 58,691,748
Fixed assets 10 25,428,846 16,256,472
Deferred charges 11 1,102,029 629,397
Deferred tax assets 12 1,062,734 718,367
TOTAL ASSETS 666,645,319 597,018,297
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES
Outstanding claims 13 228,802,457 231,348,342
Other creditors and accruals 14 34,902,186 32,095,783
Provision for taxation 15 981,925 -
Due to reinsurers 6,371,962 12,905,851
Provision for unexpired risk 154,415,229 128,518,067
Other technical reserves 24,482,898 26,620,369
Life Assurance Fund 16 1,691,431 1,840,131
Un-reconciled Life & General accounts - 960
451,648,088 433,329,502
EQUITY
Paid up capital 17 155,151,000 115,180,000
Share premium 578,850 578,850
Legal reserve 18,437,513 14,400,180
General reserve 7,412,542 5,393,876
Profit and loss account 33,417,325 28,135,889
214,997,230 163,688,795

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 666,645,319 597,018,297

ANNUAL REPORT 2016/17

ELIAS GENETI ASFAW BENTI

BOARD CHAIRPERSON CHIEF EXECUTIVE OFFICER
OROMIA INSURANCE COMPANY S.C. 21
 AUDITOR’S REPORT

OROMIA INSURANCE COMPANY S.C

GENERAL AND LONG TERM BUSINESS STATEMENT OF COMPREHENSIVE INCOME AND
OTHER PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2017
2016
Notes BIRR BIRR BIRR

REVENUE

Underwriting Result 18 43,035,929 27,223,442

Interest income 39,165,465 33,052,596

Dividend 917,998 2,780,107

Other income 938,040 2,349,620

84,057,432 65,405,765

EXPENSES

Administrative expenses 19 39,873,802 31,330,352

Board fee 597,000 196,160

Provision/reversal of provision for doubtful
debts 2,466,749 361,961

Audit fee 109,000 121,750

)43,046,551( )32,010,222(

Net profit(loss) for the year 41,010,881 33,395,543

Tax expense 15 )637,558( 176,091

Net profit after taxation 40,373,324 33,571,634

Transfer to legal reserve )4,037,332( )3,357,163(

Transfer to general reserve )2,018,666( )1,678,582(

34,317,325 28,535,889

Directors’ share on profit 20 )900,000( )400,000(

33,417,325 28,135,889

Accumulated profit/loss brought forward 28,135,889 38,469,074

Dividend declared and paid )28,135,889( )38,469,074(

Accumulated profit carried forward 33,417,325 28,135,889

EARNING PER SHARE 291 338

ANNUAL REPORT 2016/17

ELIAS GENETI ASFAW BENTI

BOARD CHAIRPERSON CHIEF EXECUTIVE OFFICER
22 OROMIA INSURANCE COMPANY S.C.
 AUDITOR’S REPORT

OROMIA INSURANCE COMPANY S.C

GENERAL AND LONG TERM BUSINESS CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 JUNE 2017
2016
BIRR BIRR BIRR
Cash Flows from Operating Activities

Net profit (loss) before tax 41,010,881 33,395,543

:Adjustment for
Depreciation and amortization 5,196,893 5,080,015
Provision for unexpired risk 25,897,162 14,152,466
Provision for /reversal of provision of doubtful debts 2,466,749 361,961
Reversal of/Provision for technical reserves )2,137,471( 3,898,052
Gain on fixed assets disposal - )659,483(
Interest income )39,165,465( )33,278,308(
Dividend Income reinvested )917,998( )2,780,107(
)8,660,129( )13,225,404(
Operational cash flow before change in working capital 32,350,752 20,170,138
Increase in stock items )1,177,962( )35,558(
Decrease/Increase in debtors )9,171,227( )5,707,220(
Increase/decrease in outstanding claims )2,545,885( 86,649,784
Increase/decrease in amount due to reinsurers )8,228,741( )39,601,574(
Increase/decrease in other creditors & accruals 2,306,403 13,138,730
Increase in difference in un-reconciled current account )960( 706
Decrease/Increase in statutory deposit )4,584,600( -
)23,402,971( 54,444,868
Net cash inflows from operating activities 8,947,781 74,615,006
TAXATION
Profit tax paid - )5,984,580(
Withholding tax paid )2,603,650( )2,213,647(
)2,603,650( )8,198,227(
6,344,131 66,416,780
Cash Flows from Investing Activities
Acquisition of fixed assets )14,186,191( )6,848,319(
Proceeds from fixed assets disposal - 676,853
Investment in fixed time deposit )44,589,681( )40,989,625(
Interest received 36,611,107 29,710,807
Investment )7,250,000( )14,098,573(
Deferred Charge )655,707( 2,780,107
)30,070,472( )28,768,750(
Cash flows from Financing Activities
Collection from subscribed shares 39,971,000 30,374,000
Share premium Collected - 59,850
Directors share on profit paid )400,000( )450,000(
Dividend paid )28,135,889( )38,469,074(
Net cash flow from financing activities 11,435,111 )8,485,224(
)12,291,230( 29,162,805
Decrease in Life assurance fund )148,700( 956,366
Net decrease/Increase in cash )12,439,930( 30,119,171
Cash at the beginning of the year 75,705,471 45,586,299
Cash at the end of the year 63,265,541 75,705,471
Components of Cash and Cash Equivalents
ANNUAL REPORT 2016/17

Cash at bank 60,155,484 65,563,952

Cash on hand 3,110,057 10,141,519
63,265,541 75,705,471

ELIAS GENETI ASFAW BENTI

BOARD CHAIRPERSON CHIEF EXECUTIVE OFFICER
OROMIA INSURANCE COMPANY S.C. 23
24
ANNUAL REPORT 2016/17

OROMIA INSURANCE COMPANY S.C

STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
FOR THE YEAR ENDED 30 JUNE 2017
Paid up capital Share Legal General Retained
AUDITOR’S REPORT

Birr premium Birr reserve Birr reserve Birr earnings Birr Total Birr
BALANCE AS AT 30 JUNE 2015 84,806,000 519,000 11,043,017 3,715,294 38,469,075 138,552,385
Collection from subscribed shares issued 30,374,000 - - - - 30,374,000

OROMIA INSURANCE COMPANY S.C.

Share premium collected - 59,850 - - - 59,850
Dividend paid - - - - (38,469,074) (38,469,074)
Net profit for the year - - - - 33,571,634 33,571,634
Transfer to legal reserves - - 3,357,163 - (3,357,163) -
Transfer to general reserve - - - 1,678,582 (1,678,582) -
Directors’ share on profit - - - - (400,000) (400,000)
BALANCE AS AT 30 JUNE 2016 115,180,000 578,850 14,400,181 5,393,876 28,135,890 163,688,795
Collection from subscribed shares issued 39,971,000 - - - 39,971,000
Dividend paid - - - - (28,135,890) (28,135,890)
Net profit for the year - - - - 40,373,324 40,373,324
Transfer to legal reserves - - 4,037,332 - (4,037,332) -
Transfer to general reserve - - - 2,018,666 (2,018,666) -
Directors’ share on profit - - - - (900,000) (900,000)
155,151,000 578,850 18,437,513 7,412,542 33,417,325 214,997,230

ELIAS GENETI ASFAW BENTI

BOARD CHAIRPERSON CHIEF EXECUTIVE OFFICER
 AUDITOR’S REPORT

OROMIA INSURANCE COMPANY S.C

NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 30 JUNE 2017

1. ESTABLISHMENT

Oromia Insurance Company S.C was established in accordance with Article 304 of the Commercial
Code of Ethiopia and the National Bank of Ethiopia Directive 746/2012 with the objective of
providing insurance services and to engage in other ancillary business activities.

2. BASIS OF PRESENTATION

The financial statements have been prepared in conformity with the Accounting policies of the
Company, the Commercial Code of Ethiopia of 1960 and the proclamation of Insurance business.
The financial statements are prepared as of and for the year ended 30 June 2017 has been
presented in Ethiopian Birr, unless otherwise stated. Due to rounding, numbers presented may
not add up precisely to the totals provided.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

PRINCIPLES OF ACCOUNTING FOR FINANCIAL INSTRUMENTS

Recognition

Financial assets are generally recognized and derecognized on the trade date, i.e. when the
Oromia Insurance commits to purchase or sell securities or incur a liability. Financial instruments
are initially recognized at cost plus directly attributable transaction costs.

Offsetting

Financial assets and liabilities are offset and the net amount is presented in the balance sheet
only when there is a legally enforceable right to offset the recognized amounts and there is an
intention to either settle on a net basis, or to realize the asset and settle the liability simultaneously.

De-recognition

A financial asset is derecognized when the contractual rights to the cash flows from the financial
asset expire or the Oromia Insurance transfers the asset and substantially all of the risks and
rewards of ownership.

A financial liability is derecognized when it is extinguished.

CASH AND CASH EQUIVALENTS

ANNUAL REPORT 2016/17

Cash and cash equivalents include balances with banks payable on demand, balances with
central banks, cash on hand, treasury bills to the extent they are not included in financial assets
held for trading, as well as checks and bills of exchange which are eligible for refinancing at
central banks, subject to a maximum term of six months from the date of acquisition.

OROMIA INSURANCE COMPANY S.C. 25

 AUDITOR’S REPORT

INVESTMENTS

Held-to-maturity investments

Held-to-maturity investments are debt securities with fixed or determinable payments and fixed
maturities for which the Company has the positive intent and ability to hold to maturity. These
securities are initially recognized at cost and subsequently measured at amortized cost using the
nominal interest method.

REINSURANCE LIABILITIES

Liabilities related to reinsurance are reported on gross basis without being offset against balance
due from reinsurers. The amount of reserves ceded to reinsurers is estimated in a manner
consistent with the treaty entered into with the reinsurers. Oromia Insurance will also claim the
reinsurers in a manner consistent with the claim liability associated with the reinsured risks, i.e.,
to the extent that Oromia Insurance is reinsured for the risks, the respective reinsures shall cover
the claims.

DEFERRED TAX ASSETS

The calculation of deferred tax assets is based on tax loss carry forwards, unused tax credits and
on deductible temporary differences between company’s depreciation/amortization expense
reported for financial reporting purpose and for tax purpose. The tax rates used for the calculation
of deferred taxes are the local rates applicable in Ethiopia. Deferred tax assets are recognized
only to the extent it is probable that sufficient future taxable income will be available for their
realization.

OTHER ASSETS

Other assets primarily consist of receivables, accrued dividends, interest and rent as well as
own-used property and equipment. Receivables are generally recorded at face value less any
payments received, net of valuation allowances. Own-used property and equipment generally is
carried at cost less accumulated depreciationand impairments. The assets are depreciated on a
straight-line basis over their estimated useful lives as shown hereunder:
%
Motor vehicles 20
Furniture& fixture 20
Office equipment 20
Computer and accessories 25
ANNUAL REPORT 2016/17

26 OROMIA INSURANCE COMPANY S.C.

 AUDITOR’S REPORT

4. PRINCIPLES OF ACCOUNTING FOR INSURANCE, INVESTMENT AND REINSURANCE

CONTRACTS

Insurance contracts
Insurance contracts under which Oromia Insurance accepts significant insurance risk are
accounted for under the requirements/guidance of the National Bank of Ethiopia.
Reinsurance contracts
The Oromia Insurance financial statements reflect the effects of ceded and assumed insurance
contracts. Assumed insurance refers to the acceptance of certain insurance risks by the company
that it has underwritten. Ceded insurance refers to the transfer of insurance risk, along with the
respective premiums, to one or more reinsurers who will share in the risks. Assumed reinsurance
premiums, commissions and claim settlements, as well as the reinsurance element of technical
provisions are accounted for in accordance with the conditions of the reinsurance contracts and
with consideration of the original contracts for which the reinsurance was concluded.
UNEARNED PREMIUMS
For short-duration insurance contracts, like most of the property and casualty contracts,
premiums to be earned in future years are recorded as unearned premiums. These premiums are
earned in subsequent periods in relation to the insurance coverage provided.
RESERVES FOR LOSS AND LOSS ADJUSTMENT EXPENSES
Reserves are established for the payment of losses and loss adjustment expenses (LAE) on claims
which have occurred but are not yet settled. Reserves for loss and loss adjustment expenses fall
into two categories: case reserves for reported claims and reserves for incurred
but not reported losses (IBNR). Case reserves for reported claims are based on estimates of
future payments that will be made with respect to claims, including LAE relating to such claims.
The estimates reflect the informed judgment of claims personnel based on general insurance
reserving practices and knowledge of the nature and value of a specific type of claim. These
case reserves are regularly re-evaluated in the ordinary course of the settlement process and
adjustments are made as new information becomes available.
IBNR reserves are established to recognize the estimated cost of losses that have occurred but
where Oromia Insurance has not yet been notified. IBNR reserves, similar to case reserves for
reported claims, are established to recognize the estimated costs, including expenses, necessary
to bring claims to final settlement. Oromia Insurance relies on its past experience, adjusted for
current trends and any other relevant factors to estimate IBNR reserves. IBNR reserves are estimates
based on actuarial and statistical projections of the expected cost of the ultimate settlement
and administration of claims. The analyses are based on facts and circumstances known at the
time, predictions of future events, estimates of future inflation and other societal and economic
factors. Trends in claim frequency, severity and time lag in reporting are examples of factors used
ANNUAL REPORT 2016/17

in projecting the IBNR reserves. IBNR reserves are reviewed and revised periodically as additional
information becomes available and actual claims are reported. The minimum IBNR reserve,
however, is 10% of the net premium earned as per the National Bank of Ethiopia requirement.
In general, reserves for loss and loss adjustment expenses are not discounted, except when
payment amounts are fixed and timing is reasonably determinable.
OROMIA INSURANCE COMPANY S.C. 27
 AUDITOR’S REPORT

DEFERRED TAX LIABILITIES

Deferred tax liabilities are recognized for temporary differences between the Oromia Insurance’s
depreciation in its profit and loss account and tax allowable depreciation.

OTHER LIABILITIES

Other liabilities primarily consist of payables, provisions for pensions and similar obligations and
employee-related provisions.

Pensions and similar obligations

For defined contribution plans, Oromia Insurance uses the actual obligations incurred.

EQUITY

Issued capital represents the mathematical per share value received from the issuance of shares.
Additional paid-in capital represents the premium, exceeding the issued capital, received from
the issuance of shares.

Retained earnings comprise the net income of the current year, not yet distributed earnings of
prior years and any amounts directly recognized in equity.

PREMIUMS

Premiums for short-duration insurance contracts are recognized as revenues over the period of
the contract in proportion to the amount of insurance protection provided. Unearned premiums
are calculated separately for each individual policy to cover the unexpired portion of written
premiums. Premiums ceded for reinsurance are deducted from premiums net of reinsurance
commission earned.

INTEREST AND SIMILAR INCOME AND INTEREST EXPENSES

Interest income and interest expenses are recognized on an accrual basis. Interest income is
recognized using the nominal interest method.

DIVIDEND AND OTHER INCOME

Other income primarily consists of any incidental income earned out of the primary operation
of the company. Dividend income earned on investments made in other companies’ shares.
Dividend income is recognized when the investees declare dividend.

CLAIMS AND INSURANCE BENEFITS INCURRED

Benefits charged to expense consist of claims and insurance benefits incurred during the period.
Furthermore, it includes claim handling costs that are directly related to the processing and
ANNUAL REPORT 2016/17

settlement of claims. Reinsurance recoveries are deducted from claims and insurance benefits.

INCOME TAXES

Income tax expense consists of current taxes on taxable income actually charged and changes in
deferred tax assets and liabilities. Expense and income from interest and penalties to or from tax
authorities are shown separately in the comprehensive income statement.
28 OROMIA INSURANCE COMPANY S.C.
 AUDITOR’S REPORT

5 CASH AND BANK BALANCE

2016
BIRR BIRR
Cash on hand 3,110,057 10,141,519
Cash at bank 60,155,484 65,563,952
63,265,541 75,705,471

6 FIXED TIME DEPOSITS

2016
BIRR BIRR
Cooperative Bank of Oromia S.C 95,154,461 131,936,386
Oromia International Bank S.C 155,472,476 130,814,486
Awash International Bank S.C 52,989,664 47,990,250
United Bank S.C 13,377,036 12,142,727
Addis International Bank S.C 6,953,933 7,653,950
Nib International bank S.C 33,400,000 -
Enat Bank S.C 43,407,746 25,627,835
400,755,316 356,165,635

7 DEBTORS AND PREPAYMENTS

2016
BIRR BIRR
Trade debtors 17,191,507 17,513,511
Staff debtors 228,686 405,423
Prepayments 15,623,506 7,728,861
Interest receivable 21,112,241 18,557,883
Withholding tax receivable 4,817,084 2,213,435
Payment on Behalf of IBLI Bore 1,171,200 466,056
Bid Receivable 114,496 291,352
Creditors with debit balances 33,941 -
Unidentified opening balance difference 91,991 -
Sundry 2,714,939 1,593,835
63,099,591 48,770,357
Less: Provision for doubtful debts (10,423,677) (7,956,929)
52,675,913 40,813,428
ANNUAL REPORT 2016/17

OROMIA INSURANCE COMPANY S.C. 29

 AUDITOR’S REPORT

WITHHOLDING TAX PAID

2016
BIRR BIRR
Balance brought forward 2,213,435 1,806,354
Balance set off against profit tax payable - (1,806,566)
Current year payment 2,603,650 2,213,647
4,817,085 2,213,435

8. STATUTORY DEPOSIT
2016
BIRR BIRR
Balance brought forward 12,692,400 12,692,400
Deposit during the year 4,584,600 -
Balance carried forward 17,277,000 12,692,400

9. INVESTMENT
2016
BIRR BIRR

Oromia International Bank S.C 8,151,939 4,233,941

Cooperative Bank of Oromia S.C 6,674,600 6,674,600

Gutu Oromia S.C 5,412,500 3,412,500

Elemo Kiltu Housing Project 1,000,000 1,000,000

Elemtu Integrated Milk Industry 1,050,000 1,050,000

Government Saving Bond 3,200,000 3,200,000

Investment in Joint Venture with Oromia Coffee Farmers Cooperative
Union 14,401,956 14,401,956

TBO Printing and Publishing S.C 1,968,750 1,968,750

OIB-ODA Real Estate plc 10,000,000 10,000,000

Ethiopian Re-insurance S.C 12,750,000 12,750,000

Sheger Micro finance S.C 1,000,000 -

ODA Integrated transport S.C 1,250,000 -

66,859,746 58,691,748
ANNUAL REPORT 2016/17

30 OROMIA INSURANCE COMPANY S.C.

 AUDITOR’S REPORT

10 FIXED ASSETS
Balance on Transfer/ Balance on
30/6/2016 Additions Adjustment 30/6/2017
COST Birr Birr Birr Birr
Motor Vehicles 25,817,799 11,951,732 - 37,769,531
Office furniture & equipment 7,553,596 278,540 1,113,080 8,945,216
Computer and accessories 2,453,346 - 833,371 3,286,718
Fixed assets in store 1,111,781 1,955,919 (1,946,451) 1,121,250
36,936,523 14,186,191 - 51,122,714
DEPRECIATION
Motor Vehicles 15,014,645 3,354,844 - 18,369,489
Office furniture & equipment 4,050,146 1,234,027 - 5,284,174
Computer and accessories 1,615,260 424,946 - 2,040,206
20,680,051 5,013,817 - 25,693,868

NET BOOK VALUE 16,256,472 25,428,846

11 DEFERRED CHARES
Balance on Balance on
30/06/2016 Addition 30/06/2017
Cost Birr Birr Birr
Establishment cost 930,282 - 930,282
Recovery Yard 703,134 655,707 1,358,841
1,633,416 655,707 2,289,123
Amortization
Establishment cost 689,959 93,028 782,987
Recovery Yard 314,060 90,047 404,107
1,004,019 183,076 1,187,095

Book value 629,397 1,102,029

ANNUAL REPORT 2016/17

OROMIA INSURANCE COMPANY S.C. 31

 AUDITOR’S REPORT

12 DEFERRED TAX ASSET

2016
Birr Birr
Depreciation for reporting purpose 4,887,933 4,788,755
Depreciation for tax purpose (3,740,042) (4,201,784)
Temporary difference 1,147,891 586,971
Deferred tax asset @30% 344,367 176,091
Balance brought forward 718,367 542,275
Balance carried forward 1,062,734 718,367

13 OUTSTANDING CLAIMS
2016
Birr Birr
Engineering 11,113,390 7,168,524
Fire-General 12,539,069 5,987,850
Marine 5,032,387 5,261,978
Motor 187,744,884 194,070,965
Group medical 1,737,571 1,761,536
Pecuniary 368,394 115,689
Workmen Compensation 2,709,493 2,490,833
Bond 7,557,270 14,490,967
228,802,457 231,348,342

14 CREDITORS
2016
Birr Birr
Withholding tax payable 505,896 356,713
Income tax 634,921 603,039
Pension and provident fund 469,771 339,632
Cost sharing 15,388 20,887
Accruals 10,379,734 4,831,892
Payable to Sales agents 78,531 480,350
Dividend tax payable 855,319 1,659,431
Payable to office fund 1,274,249 737,534
Dividend payable 4,823,180 18,090,264
Cash accounts with credit balances 8,003,279 529,373
Suspense - 51,611
Subscription fee payable 22,834 42,763
Payable to clients 4,628,925 1,683,038
Directors’ share on profit payable 900,000 400,000
Sundry 901,185 362,153
ANNUAL REPORT 2016/17

Share transfer tax 1,080 -

Travel coupon 200,779 205,651
VAT Payable 1,207,116 1,701,451
34,902,186 32,095,783

32 OROMIA INSURANCE COMPANY S.C.

 AUDITOR’S REPORT

15 PROVION FOR TAXATION

2016
Birr Birr Birr
Profit before taxation 41,010,881 33,395,543

Add: Depreciation for reporting purpose 4,887,933 4,788,755

Entertainment 1,197,775 1,716,169
6,085,707 6,504,924
Less: Depreciation for tax purpose (3,740,042) (4,201,784)
Dividend income (917,998) (2,780,107)
Interest income taxed at source (39,165,465) (33,052,596)
Gain on fixed assets disposal - (659,483)
(43,823,505) (40,693,970)

Taxable profit/Loss for tax purpose 3,273,084 (793,503)

Provision for tax @ 30% 981,925 -
Balance brought forward - 7,791,146
Less: settlement in cash - (5,984,580)
Less: Balance set off against withholding
tax - (1,806,566)
981,925 -

15.1 TOTAL TAX EXPENSE

2016
Birr Birr
Current year provision for taxation 981,925 -
Deferred tax asset (344,367) (176,091)
637,558 (176,091)

15.2 DEPRECIATION FOR TAX PURPOSE

Computers Other assets Depreciation
Birr Birr Birr
a) Depreciation on prior years pooling method
Depreciation base brought forward 969,964 15,513,851
Current Period disposal - -
Current Period depreciation base 969,964 15,513,851
ANNUAL REPORT 2016/17

Depreciation @25%&20% (242,491) (3,102,770) 3,345,261

Depreciation base Carried forward 727,473 12,411,081

OROMIA INSURANCE COMPANY S.C. 33

 AUDITOR’S REPORT

b) Depreciation on current year acquisitions straight line method

COST
Current Period addition 833,371 13,343,352
DEPRECIATION
Depreciation @20%&15% 85,979 308,802 394,781
NET BOOK VALUE 747,392 13,034,550
Total depreciation for tax purpose 3,740,042

16 LIFE ASSURANCE FUND

2016
Birr Birr Birr
Gross premium written 4,672,857 3,888,603
Less-Premium ceded (1,669,475) (998,686)
3,003,382 2,889,917
Less: Provision for outstanding claims - 59,494
Claims incurred and paid 2,596,047 1,010,695
Commission Paid 354,824 324,255
(2,950,872) (1,394,443)
52,510 1,495,474
Interest Income 1,107,962 225,712
1,160,472 1,721,186
Operating & administrative expense
Salaries and benefit 963,096 489,739
Actuaries fees 91,982 81,752
Administrative expenses 254,094 193,329
(1,309,172) (764,821)
Life assurance fund-current (148,700) 956,366
Life assurance fund-balance brought
forward 1,840,131 883,765
1,691,431 1,840,131

17 CAPITAL
2016
Number of
shares Par value Birr
Subscribed 245,860 1,000 245,860,000 250,000,000
ANNUAL REPORT 2016/17

Paid 155,151 1,000 155,151,000 115,180,000

34 OROMIA INSURANCE COMPANY S.C.

 AUDITOR’S REPORT

18 REVENUE ACCOUNT
2016
Birr Birr Birr
GROSS WRITTEN PREMIUM (Note 18.1) 358,045,084 333,926,463
PREMIUM CEDED(Note 18.2) (87,318,940) (76,170,360)
270,726,144 257,756,103
REINSURANCE COMMISSOIN 19,535,887 12,479,802
NET PREMIUMS AND REINSURANCE 290,262,031 270,235,905
Sales of salvages 32,931,368 33,120,098
323,193,400 303,356,004
LESS: Administration Expense(Note 18.3) 44,857,486 31,839,789
Provision for unexpired risks (net) 25,897,162 14,152,466
“ “ outstanding claims - 47,039,314
Reversal of/ Provision for outstanding claims (11,214,249) -
Reversal of/provision for Other technical re-
serves (net) (2,137,471) 3,898,154
Claims Paid 213,582,930 170,775,816
Commission expenses 9,171,612 8,427,023
Total expense (280,157,470) (276,132,562)

UNDERWRITING SURPLUS TRANSFERRED

TO PROFIT AND LOSS STATEMENT 43,035,929 27,223,442

18.1 GROSS PREMIUM

2016
Birr Birr
Engineering 16,781,458 10,816,595
Fire-General 20,297,870 16,692,324
Liability 999,243 188,091
Marine cargo 16,603,946 18,695,427
Motor 252,002,309 239,859,239
Accident and health 10,149,521 9,993,432
Bond 11,433,698 -
Burglary 124,979 -
Pecuniary 21,324,884 29,584,980
Workmen Compensation 5,895,310 5,895,480
Other-micro 2,431,866 2,200,896
ANNUAL REPORT 2016/17

358,045,084 333,926,463

OROMIA INSURANCE COMPANY S.C. 35

 AUDITOR’S REPORT

18.2 PREMIUM CEDED

2016
Birr Birr
Engineering 9,087,518 2,700,472
Fire-General 8,170,075 6,755,453
Liability 49,962 -
Marine Cargo 4,259,058 3,692,277
Motor 49,807,126 48,461,243
Accident and health 1,367,151 237,799
Pecuniary 5,828,156 13,200,486
Bond 8,170,113 -
Burglary and house 246,469 -
Workmen Compensation 295,812 -
Other 37,500 1,122,631
87,318,940 76,170,360

18.3 UNDERWRITING ADMINISTRATION EXPENSES

2016
Birr Birr
Salary and wages 20,111,152 16,661,442
Employees benefits 9,964,911 3,269,824
Repair and maintenance 1,303,645 1,067,776
Fuel and lubricants 991,865 812,519
Rent expenses 7,726,189 5,874,994
Communication 1,052,442 962,580
Advertisement and promotion 261,360 144,317
Stationery and Printing 223,920 229,319
Perdiem and travailing 161,432 165,591
Cleaning and sanitation 144,729 108,650
Utility 67,258 44,538
License and registration 1,607 268
Bank Charges 5,339 5,122
Depreciation and amortization 1,936,861 2,028,265
Entertainment 339,462 271,353
Miscellaneous 564,252 193,231
ANNUAL REPORT 2016/17

Membership and subscription fee 1,063 -

44,857,486 31,839,789

36 OROMIA INSURANCE COMPANY S.C.

 AUDITOR’S REPORT

19 GENERAL AND ADMINISTRATION EXPENSES

2016
Birr Birr
Salary and wages 10,596,722 7,973,885
Employees benefits 6,171,923 6,168,817
Repair and maintenance 992,531 853,261
Fuel and lubricants 1,495,417 894,009
Rent expenses 7,143,803 4,027,691
Communication 856,218 474,745
Advertisement and promotion 2,363,882 1,643,799
Stationery and Printing 1,185,922 2,430,545
Insurance 881,249 283,926
Perdiem and travailing 413,226 252,369
Cleaning and sanitation 208,274 243,188
License and registration 56,440 40,328
Legal and professional fee 595,154 96,206
Bank Charges 690,680 436,508
Depreciation and amortization 3,134,148 2,923,830
Entertainment 858,312 1,444,817
Annual General Meeting 258,224 201,571
Miscellaneous 960,125 591,084
Interest expense - -
Membership and subscription fee 181,428 180,575
Donation Expense 700,000 -
Guarding 130,125 169,199
39,873,802 31,330,352

20 BOARD OF DIRECTORS FEE

The 7th ordinary meeting of the shareholders’ passed a resolution that the Board of directors
monthly allowance to be Birr 4,000 and their annual remuneration to be Birr 100,000.
21 EMPLOYEES

The company has 333 employees as at 30 June 2017 (298, June 2016)
22 COMPARATIVE FIGURES

Certain last year figures have been rearranged and reclassified to make them consistent with
current year presentation.
ANNUAL REPORT 2016/17

OROMIA INSURANCE COMPANY S.C. 37

 EVENTS

ELDERS BLESSING THE 7TH AGM OF SHAREHOLDERS BOARD CHAIRPERSON ADDRESSING THE 7TH AGM

7TH AGM OF SHAREHOLDERS IN SESSION

ANNUAL REPORT 2016/17

WELCOMING THE NEW CEO

38 OROMIA INSURANCE COMPANY S.C.

 EVENTS

INSURED LIVESTOCK, BORENA 2016 INSURED MAIZE CROP, ASSOSA 2016

INSURED TEFF CROP, EAST SHEWA, ADA'A 2016

DURING FILED VISIT OF DROUGHT AFFECTED CATTLE, DAMBAL SADEN, YABELLO, 2017
ANNUAL REPORT 2016/17

WE ARE COMMITTED TO REACH THE MARGINALIZED, LOW INCOME PEOPLE

OROMIA INSURANCE COMPANY S.C. 39

 EVENTS

BIRR 1.6 MILLION

IBLI PAYOUT CEREMONY ON 18TH FEBRUARY, 2017 AT BORENA, YABELLO TO 1,474 HOUSEHOLD POLICYHOLDERS

A WOMAN PASTORALIST RECEIVING CLAIM PAYMENT

THIS IS A CORPORATE SOCIAL RESPONSIBILTY AND FUTURE POTENTIAL BUSINESS VENTURE

ANNUAL REPORT 2016/17

40 OROMIA INSURANCE COMPANY S.C.

 EVENTS

2016/17 ANNUAL PERFORMANCE REVIEW MEETING AND TRAINING

ANNUAL REPORT 2016/17

OROMIA INSURANCE COMPANY S.C. 41

 LIST OF BRANCHES

BRANCHES IN ADDIS ABABA

Name of Contact Details
Location Branch Managers
Branch Telephone Mobile P.O. Box

Meksiko,
Finfinnee Amanu Daba +251 - 115 - 572 – 126 +251-9-29-90-75-15 10090
Sengatera Area

Head office Bole, Africa

Abdi Bulti +251 – 115 – 528 – 557 +251-9-29-90-75-18 10090
Branch Avenue

Bole Novis Building Mekonnen Degu +251 – 116 – 623 – 194 +251-9-29-90-75-17 10090

Merkato 4th Police Station Ayantu Yoseph +251 – 112 – 758 – 502 +251-9-29-90-75-21 10090

Gofa Gofa Area Abera Guta +251 – 114 – 161 – 122 +251-9-29-90-75-27 10090

Doka bora 22 Area Samuel Jote +251 – 116 – 630 – 208 +251-9-29-90-75-20 10090

Gullele Gullele Area Kuleni Gudeta +251 – 112 – 595 – 577 +251-9-29-90-75-28 10090

Tewodros Square
Wadessa Mengistu Ebisa +251 – 111 – 118 – 404 +251-9-29-90-75-22 10090
Area

Merkato Bombi
Birbirsa Asrat Shegena +251 – 112 – 130 – 111 +251-9-29-90-75-23 10090
Tera Area

Chaffe Flamingo Area Fikadu Bayisa +251-115 -52 – 85 - 57 +251-9-29-90-75- 01 10090

Kazanchis Oda
Qarsa Meron Mulatu +251 – 118 – 962 – 249 +251-9-29-90-75-19 10090
Tower

Jamo Ayer Tena Area Ebsa Mohammed +251 – 118 – 962 – 129 +251-9-29-90-75-29 10090

Saris Adey Abeba

Bulbula Mecha Haile +251 – 114 – 430 – 181 +251-9-29-90-75-24 10090
Area

Kolfe Atena Tera

Kolfe MasreshaTeshome +251 –112 – 791 – 330 +251-9-29-90-75-30 10090
Area

Gerji Gerji Area Kumela Tolessa +251 – 116 – 394 – 037 +251-9-29-90-75-26 10090

Dollo biddena
Meskel Flower
(meskel flower Kasahun Sisay +251 – 114 – 168 – 956 +251-9-29-90-75-25 10090
Area
area)

Muda Lideta Area Obse Beyene +251 – 115 – 573 –103 +251-9-29-90-75-06 10090

Bole
Ejersa Medhanialem Meseret Regasa +251 – 116 – 392 – 252 +251-9-29-90-75-16 10090
Area

Kality Kality area Sifan Dame +251 – 114 – 715 – 279 +251-9-29–90-75-07 10090
ANNUAL REPORT 2016/17

42 OROMIA INSURANCE COMPANY S.C.

 LIST OF BRANCHES

UP-COUNTRY BRANCHES
Contact Details
Name of
Branch Location Branch Managers Telephone Mobile P.O. Box

Ambo Ambo Town Sisay Buli +251– 112 – 366 – 414 +251-9-29-90-75-32 150

Woliso Woliso Town Birhane Negessu +251 – 113 – 413– 511 +251-9-29-90-75-33 305

Shashemene Shashemene Neguse Daba +251 – 461 – 102– 190 +251-9-29-90-75-39 1368

Adama Adama Town Ensermu Chala +251 – 221 – 119 –187 +251-9-29-90-75-31 2582

Wondewosen +251 – 251 – 110 – 647 +251-9-29-90-75-38 916

Dire Dawa Dire Dawa Solomon

Jimma Jimma Esayas Buzayew +251 – 471 – 115 – 224 +251-9-29-90-75-34 1401

Nekemte Nekemte Abera Alemu +251 – 576 – 616 – 680 +251-9-29-90-75-35 57

Hawassa Hawassa Ayana Wondimu +251 – 462 – 201 – 008 +251-9-29-90-75-58 1576

Mekele Mekele Mebrehatu Teka +251 – 344 – 408 – 371 +251-9-29-90-75-74 2072

Bishoftu Bishoftu Meaza Dibekulu +251 – 114 – 370 – 439 +251-9-29-90-75-75 -

Dessie Dessie Hana Demlew +251 – 333 – 111– 065 +251-9-29-90-75-76 1205

Bahirdar Bahirdar Merkebu Tesema +251 – 582– 208– 360 +251-9-29-90-75-00 -

Asela Asela Alemu Feto +251– 223 – 318 – 214 +251-9-29-90-75-02 211

Bale robe Bale robe Hodata Teferi +251 – 226 – 650– 375 +251-9-29-90-75-03 1368

Sebeta Sebeta Daniel Etafa +251 – 118– 962 – 130 +251-9-29-90-75-05 10090

Gimbi Gimbi Yedeta Babo +251 – 557 – 710 –344 +251-9-29-90-75-04 320

Burayu Burayu Birhane Kebede +251 – 112 – 601 – 934 +251-9-29-90-75-08 10090

Lagatafo Lagatafo Fayo Kasim +251 –116 – 679 – 985 +251-9-29-90-75-09 10090

Mettu Mettu Teferi Amena +251- 471 - 410 - 018 +251-9-29-90-75-10

CONTACT OFFICES
Name of Contact Office Telephone P.O. Box Fax

Chiro +251-255-512-265 - +251 - 255 – 512 - 265

Bule hora +251-226-650-375 - +251 – 462 – 201 -009

Yabello +251-464-461-231 - +251–464 - 461 - 173

ANNUAL REPORT 2016/17

OROMIA INSURANCE COMPANY S.C. 43

 KAAMPAANII INSHURAANSII OROMIYAA W.A.
ኦሮሚያ ኢንሹራንስ ኩባንያ አ.ማ.
OROMIA INSURANCE COMPANY S.C.
Where Passion, Experience and Dedication meet!

MAJOR TYPES OF INSURANCE PRODUCTS

Oromia Insurance Company provides General and Long Term Insurance Services.
They are :-

NON-LIFE Fidelity Guarantee Insurance

All Risks Insurance Fire and Allied Perils
Insurance
Burglary and House Breaking
Goods-in-Transit
Insurance
Horticulture-plantation
Bonds Insurance
••Performance bond Inland Carriers Liability
••Supply bond Insurance
Marine Cargo Insurance
••Customs bond
Money Insurance
••Bid bond
Motor Insurance
••Maintenance bond
Personal/ Group Personal
••Advance payment bond Accident Insurance
••Retention and release bond Plate Glass Insurance
Condominium Insurance Product Liability Insurance
Professional Indemnity
Consequential Loss
Insurance
Engineering Public Liability Insurance
••Boiler Insurance Warehouse Operators Liability
••Contractors All Risks Insurance Insurance
••Contractors Plant & Machinery Workmen’s Compensation
Insurance Insurance
••Deterioration of Stock Insurance Travel Health Insurance for
••Erection All Risks Insurance Travelers
••Electronic Equipment Insurance LIFE INSURANCE
••Machinery Breakdown Insurance MICROINSURANCE
••Machinery Loss of Profit Insurance AGRICULTURAL INSURANCE

All Insurance Service Under One Roof:

Llfe l Non -Life l Microinsurance l Agricultural Insurance

Tel: +251 11 557 2121 | Fax: +251 11 557 2122 | [Link]: 10090, Addis Ababa, Ethiopia
Email: oromiainsurance@[Link] | website: [Link]
 FUTURE HEADQUARTERS OF OIC

Tel: +251 11 557 2121 | Fax: +251 11 557 2122 | [Link]: 10090, Addis Ababa, Ethiopia
Email: oromiainsurance@[Link] | website: [Link]