Regulatory Alerts2022-09-15
Added · Updated
Minimum Paid-Up Capital for an Insurance Company Directive No. SIB/57/2022
The National Bank of Ethiopia sets minimum paid-up capital requirements of Birr 400 million for general insurance, Birr 100 million for long-term insurance, and Birr 500 million for combined licenses, requiring full cash payment in blocked accounts. Existing insurance companies with capital below these thresholds must submit an action plan to the National Bank within 30 days and raise their capital by June 30, 2027. Insurance companies in the process of share subscription may operate with lower initial capital of Birr 60 million, Birr 15 million, or Birr 75 million respectively, provided they meet the full requirements within seven years of commencing business. Failure to comply allows the National Bank to suspend licenses or place companies under receivership.