In November 2022, Minet Uganda⏤ a risk, re-insurance and human capital solutions advisory company celebrated its 5th anniversary. The company has however been present for much longer, but under different names, thus the “5 years in Uganda and 75 Years of African Heritage” celebratory theme.
Minet started operations in Uganda in 1954 as JH Minet Company. In 1997 Aon, a global provider of risk management, human resource consulting and outsourcing solutions, as part of their African expansion strategy, acquired London Minet and subsequently the Ugandan operation became Aon Minet and later Aon Uganda.
In 2017 private equity firm, Capitalworks acquired Aon’s shareholding in several African operations and renamed the business to Minet in many markets, including Uganda.
The 5th anniversary celebrations also doubled as a send-off for the exuberant and bubbly Maurice Amogola, Minet’s larger-than-life and longtime Chief Executive Officer. Mr. Amogola who led Aon Uganda and later Minet Uganda since August 2006 went into retirement at the tail end of 2022. To replace him, the board chose Edward Nambafu.
Nambafu, joined Minet in October 2022. He previously held the position of General Manager at Britam General Insurance Co Ltd for 8 years. Britam is one of Uganda’s top general insurance companies.
Before that, he worked at UAP Old Mutual for 2 years (as Assistant Technical Manager and Sales & Distribution Manager) as well as at the National Insurance Corporation as a Branch Manager and Deputy Marketing Manager. He is a qualified Fellow of the Insurance Training College of Uganda and holds an Advanced Qualification (ACII) from the Chartered Insurance Institute of the United Kingdom.
He also holds an MBA from Uganda Christina University and a Bachelor of Arts from Makerere University.
It is not clear whether Amogola voluntarily stepped down or was ousted by Capitalworks, the new majority shareholder. Capitalworks is an asset management and investment firm headquartered in South Africa.
Nambafu joined Minet Uganda at a time, when the company which used to be the traditional number one insurance broker for quite a long time, until 2017, is facing very stiff competition from all corners. struggling to retain its 2nd place. In fact it has since lost its No.1 position and its second place, is also under an onslaught.
Clarkson Insurance Brokers- a relatively new player, in 2022 decisively dethroned Minet from the No.1 spot with a UGX7.1 billion lead in net premiums collected. Clarkson collected UGX68 billion in premiums, earning a commission of UGX9.1 billion, representing 15% and 13.5% premiums and commission market share, respectively.
Minet on the other hand collected UGX60.9 billion in premiums and UGX8.4 billion in commissions, representing a 13.4% and 12.5% premiums and commissions market share respectively, in a 51-company market. This would be the second time since rebranding to Minet that the company’s No.1 trophy is being snatched by Clarkson, the first time, being in 2019.
That year, although Minet brokered UGX46.8 billion in premiums versus Clarkson’s UGX40.6 billion, the latter earned UGX7 billion in commissions, versus Minet’s UGX5.2 billion, translating into a 16.1% market share for Clarkson and 12% for Minet.
The Insurance Regulatory Authority (IRA), measures market market share dominance based on commissions earned.
Minet momentarily claimed its top place in 2020 with a slim 0.6% market share lead (15.4 % for Minet and 14.8% for Clarkson). In 2021 Minet was running neck to neck with Clarkson with a market share of 13.3% and 13.2% respectively. However, in 2022, Clarkson closed this gap with a 1% lead (13.5% vs Minet’s 12.5%), reclaiming the top spot prize from Minet.
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Market talk is rife that, in fact, it is Minet’s market share losses and mixed gains since 2017 that precipitated Maurice Amogola’s ousting after Capitalworks’ takeover. But this has not been confirmed.
A multi-dimensional onslaught
If the Q3 2023 figures are anything to go by, Minet is on course for a second year in an unfamiliar and uncomfortable second position.
According to the Q3 2023 results, Clarkson, placed UGX73.1 billion in premiums, earning a total commission of UGX 11.3 billion, translating into 21.12% market share. On the other hand, Minet Uganda, which placed UGX62.3 billion in premiums and earned UGX9.7 billion in commissions, translating into 18.11% market share.
Being in the second position, may not be the only problem that Minet has to contend with. Over the last 5 years, other than Clarkson, three other serious rivals⏤ Afrisafe Risk Consultants, ARIS Uganda (African Risk & Insurance Services Ltd ) and Willis Towers Watson have emerged, over and above Marsh Uganda which has always been Minet’s traditional rival.
In the Q3 2023 results, Afrisafe Risk Consultants who placed UGX23.2 billion, earning a commission of UGX4.4 billion, equivalent to 8.18% market share are in the third place. ARIS Uganda (African Risk & Insurance Services Ltd ), in the fourth position, placed UGX32.2 billion and earned UGX 3.7 billion in commission⏤ 7% market share.
In the 5th place is Marsh Uganda which placed UGX24 billion and earned UGX3.3 billion in commissions (6.26% market share).
Willis Towers Watson, a subsidiary of the French insurance brokerage giant WTW, placed UGX28.8 billion worth of business and earned UGX2.7 billion in commissions to collar the 6th position.
All these are serious rivals for Minet’s cake that Edward Nambafu has to look out for in his driving mirror.
Other than the usual brokerage competitors, and they are now 51 of them and counting, unlike 10 years ago, when they were just 28, commercial banks too have also emerged as new competitors in the insurance intermediary space.
The 19 banks combined, in 2022, mobilised UGX142.7 billion in insurance premiums, compared to UGX103.5 billion in 2021⏤ a 38% growth, and accounting for 9.9% of total premiums, up from 8.8 % in 2021. This is on course to get better as in the 9 months to September 2023, out of the entire insurance industry’s UGX1.23 trillion total premiums, bancassurance hauled in UGX134.7 billion in premiums- equivalent to 10.96%.
Edward Nambafu’s job is so well, cut out. He will need every ounce of his experience, relationships and more.
