Re-insurer Hires HST to Revamp Human Resources Strategy

The project could cost the re-insurer an estimated of 2.8 million Br

HST Consulting has been engaged to overhaul the human resources strategy by Ethiopian Reinsurance, the nation’s first reinsurance firm, for 2.8 million Br.

The firm was awarded the project last month after winning an international bid and competing against KPMG Consulting, one of the leading global consulting firms. The tender was announced in March 2018, and the two companies responded to the solicitation bid and submitted their proposals. The two firms passed the technical evaluation phase and reached the financial stage, where HST won the bid by offering the lowest price.

Ethiopian Re recently completed its 10-year strategy planning that it expects to implement soon, according to Yewondwossen Eteffa, founding CEO of Ethiopian.

“To implement it we need to have strong and qualified human resources,” he said, “that is why the design of a human resource strategy came into the scene.”

HST will develop the company’s organization scheme; human resources strategy; learning and development; succession planning and performance management. HST is expected to finalise the strategic plan and deliver it to the firm within 17 months.

“We will support the company to realise its broader strategy,” said Kalkidan Fekadu, business development officer at HST.

Ethiopian Reinsurance launched its operations two years ago. During its first year, it underwrote a gross premium of 519.8 million Br. Two-thirds of the amount was generated by way of compulsory insurance policies sold by government mandates. The company paid gross claims of 85.9 million Br and ceded as commissions 122.6 million Br to reinsurers.

The company has 115 shareholders, mostly institutional shareholders, including banks and other insurance firms. Commercial Bank of Ethiopia and Ethiopian Insurance Corporation, both state-owned financial institutions, control 40pc of the company. In its initial year, the firm registered a 61 million Br loss.

For Abdulmenan Mohammed, a financial expert with 15 years of experience, the company’s decision in hiring external consultants to design its human resource strategy makes sense.

“As it is a new firm, Ethiopian Re needs to have the right number and quality of staff,” he said. “It should make sure that the output of the consultant will address its needs and the service it obtains is value for money.”

While HST was still in partnership with Deloitte, it worked on similar projects for Ethiopian Insurance Corporation and Bank of Abyssinia.

HST Consulting Plc was established with a registered capital of 300,000 Br a decade and a half ago through a consortium established by Haileleul Tamiru, Solomon Gizaw and Tekeste Gebru. Three years ago, Haileleul left the company, and Getu Jemaneh replaced him. HST Consulting was initially formed to provide audit services to local companies. It also engaged in organisational systems and targets operating model designs, outsourcing, recruitment and payroll management.

In January 2012 it partnered with Deloitte Global, forming Deloitte Consulting Plc, which became operational in July of the same year, and provided consultancy and financial assistance for five years. The firms ended the partnership last year following a disagreement over management style.

Five months after the split, HST acquired the local firm, Encore Employment, Training & Consultancy Services Plc, founded in 2006 by Zekrie Negatu, Getachew Zewdie and Hailu Zeleke.

HST reorganized itself to form HST Consulting, the consultancy arm of the company; and HST Chartered Certified Accountants, which undertakes assurance and audit services. The firm has 135 employees and has acquired about 250 clients since it started operations independent of Deloitte.


Published on Aug 25,2018 [ Vol 19 ,No 956]



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