Melaku Sissay, Nile Insurance’s CEO for the, resigned from his position that he held since last years. His resignation came a week after the company presented its performance report for its shareholders. The Insurer has also confirmed that the company’s board of directors replaced Melaku by the claims manager, Hailu Mekonnen. The board’s appointment has also been approved by the National Bank of Ethiopia.

The report presented to the shareholder’s reveals that the company made 20 million Birr in the last fiscal year. Nevertheless, in 2015 the insurance company made 50 million Birr. The Earnings per share has also decline to 119 Birr. The company’s underwriting surplus declined by 25 percent to 56.5 million Birr.

The decline in performance, according to Fortune can be attributed to different factors.

Nile’s written gross premiums from general and life insurance businesses increased by 17 percent and reached 433.3 million Birr. Out of this, 12 percent was ceded to reinsurers.

As a result retention rate increase to 89.4 percent from 87.4 percent in 2015. This is considerably higher than the industry average.

Melaku was first appointed by Nile more than 10 years ago. Right before he was appointed as the CEO of the firm, he was Manager of the Internal Audit Department for more than nine years.

The newly appointed CEO joined Nile as a junior clerk 21 years ago, when the insurance company was established. Ever since then, he has served in different key positions of the insurance industry, including as the acting CEO of Tsehay Insurance in 2013.

Source: Fortune