Although it is now slightly over 10 years since Sanlam, one of the 50 largest internationally active insurance groups and the second-largest in Africa, opened shop in Uganda as Sanlam Life, it is just about 6 years since Sanlam General Insurance (Sanlam GI) formally entered the Ugandan market.
Sanlam GI’s entry was via a larger April 2014, acquisition of 49 percent of NICO Holdings’ general insurance business across in Malawi, Zambia, Tanzania and Uganda by Sanlam Emerging Markets (SEM), that saw Sanlam acquire a majority stake in Niko Insurance Uganda a subsidiary of NICO Holdings. At the time, NIKO just had 2.7% industry market share or UGX10.4 billion in gross written premiums.
Following the acquisition, Sanlam, in July 2015 appointed Gary Corbit, a time-tested insurance turnaround chief, with over 20 years’ experience in the business to head the Ugandan operation. Gary, came in with strong credentials- he had just completed turning around the fortunes of Sanlam Life Assurance in Zambia, moving its market share from 22% in 2009 to 40% at the end of 2014, upping its market position from No.3 to No.1 in the life business category.
But he was also no stranger to the Ugandan insurance market. Between April 2007 and December 2009, The Insead Business School trained executive, who holds an MBA (Finance and Marketing) had spearheaded the turnaround of the Insurance Company of East Africa (ICEA) in Kampala. Between December 1999 and March 2007, he had also worked in various capacities for UAP/Old Mutual in Uganda and Kenya- first as CEO for UAP/United Assurance in Kampala, then as General Manager for UAP Insurance in Kenya.
Besides insurance, Gary had prior senior executive experience in the auto and electronics businesses, at Car & General Kenya Ltd, then Kenya’s largest auto and power equipment dealer and the Xerox Corporation.
With Gary on board, by 2017, Sanlam GI’s written premiums had more than doubled to UGX28.8 billion and market share grew to 7.5%, making Sanlam GI Uganda’s 5th largest general insurer- all in just two years.
In the same year, a merger with Lion Assurance in Uganda- was finalised, creating a combined UGX63.2billion business. Gary successfully led the consolidation of the two businesses, further grabbing more market share and by end of 2018, the new Sanlam GI now boasted of UGX71.4 billion in gross written premiums, with a market share of 15 percent.
Gary, in an interview with CEO East Africa Magazine, explained that in calculating market share and position, Sanlam does a “like-for-like” comparison, excluding medical insurance which the company does not offer.
“In a like-for-like comparison though- minus medical insurance, which we do not cover at all, because it would be competing with Sanlam Life, our sister company, Sanlam GI is in effect the No.2 insurer in the categories we offer,” he said.
Healthy 2019 and becoming No.1 in net earned premiums
Tribunal Backs URA in UGX 10.2 Billion Century Bottling Tax FightIn the just-published results for 2019, Sanlam has registered further growth, consolidating its grip on the market. Gross written premiums in 2019 grew by 13% from UGX71.4 billion in 2018 to UGX80.8 billion.
“Minus medical insurance, our market share in 2019 rose to 17.4 percent. This good performance is built on the overall good foundation made over the last 3 years headlined by a compounded annual growth rate of 48% in gross written premiums, resulting in Sanlam being the number 1 player in net earned premiums and No.2 in Return on Equity for shareholders,” Corbit, told CEO East Africa.
“This has been achieved by ensuring high levels of retention for existing businesses and acquisition of new business, itself driven by our focus on people- both our customers and our staff,” he said adding: “Sanlam GI values our commitment to our clients to honour their claims when they fall due and we do so promptly. In 2019, we paid over UGX23 billion in claims. This represents a year on year growth of over 57% in paid claims. Besides, we care for and value not just our customers but our staff- we hunt as a pack, we win as a pack and we cry together.”
Covid-19: If there is a risk we have covered, we will pay it
Gary says, the company is proud to build on the legacy of its founders- 101 years of Sanlam overall and 10 years in Uganda.
“You do not last that long by doing the wrong things. We insist on doing the right things and doing them consistently. For we understand that people don’t care about insurance per se but they care more about how easy it is to make claims and getting those claims paid. That’s why we pay our claims extremely quickly,” he says.
Gary is also confident that this solid performance sets a good foundation for the business to confidently meet all client expectations as well as withstand such shocks as Covid-19.
“True Covid-19 has affected the general industry and will probably continue doing so in the medium term. Major business lines such as travelling, engineering projects and donor-funded projects will be affected and there will most likely be an increase in Covid-19 associated claims, but I would like to assure all our customers that if there is a risk we have covered and it falls due, we will pay it promptly, otherwise what’s the use for insurance?”
