LICENSING AND SUPERVISION OF INSURANCE BUSINESS

AMENDMENT TO INVESTMENT OF INSURANCE FUNDS DIRECTIVE NO. SIB/52/2020

Whereas, insurance’ companies mobilize significant financial resources predominantly in the form of premiums on insurance policies;

Whereas, a significant portion of these financial resources is usually invested by insurance companies in income-earning assets in order to maximize profits;

Whereas, insurance companies should take in to account the financial risk, diversification, liquidity, and safety in making such investment decisions so as not to endanger their liquidity and solvency;

Now, therefore, in accordance with Article 25(1) of Insurance Business Proclamation No. 746/2012 and Article 64(2) of Insurance Business Proclamation No. 746/2012 as amended by the Insurance Business (Amendment) Proclamation No.1163/2019, the National Bank of Ethiopia hereby issues this directive.