Stanbic, Absa and Centenary Control Nearly Half of Uganda’s Bancassurance Market as Premiums Top UGX 302 Billion IRA data shows the three banks generated UGX143 billion in insurance premiums in 2025, cementing bancassurance as one of Uganda’s fastest-growing insurance distribution channels.

The bancassurance market is increasingly consolidating around a small group of dominant lenders, with Stanbic, Absa and Centenary emerging as the leading distributors of insurance through banking channels.

The Insurance Regulatory Authority (IRA) Bancassurance Performance Report for the four months 2025, the three banks jointly generated UGX143.13 billion in insurance premiums, representing 47.36% of the total bancassurance market.

The figures highlight how insurance distribution through banks has evolved from a supplementary service into a core channel for insurers seeking access to large customer bases.

Centenary Bank led the market with UGX50.25 billion in total premiums, followed by Absa with UGX49.88 billion, while Stanbic generated UGX43.01 billion. 

Together, the three accounted for nearly half of all insurance premiums distributed through the banking system.

Across the sector, banks distributed UGX302.26 billion in insurance premiums by the end of 2025. 

Life insurance dominated, generating UGX240.26 billion, while non-life insurance accounted for UGX61.99 billion. 

The imbalance reflects the structure of bancassurance products in Uganda, where many policies are tied to lending activity.

Beyond the top three, several other banks also recorded significant volumes. Dfcu Bank generated UGX24.85 billion, followed by Equity with UGX23.93 billion.

They were followed by Post Bank now Pearl Bank (UGX15.11 billion), Housing Finance Bank (UGX14.14 billion) and Standard Chartered (UGX12.25 billion).

Other notable contributors included Bank of Africa (UGX11.78 billion), KCB (UGX11.21 billion), Finance Trust (UGX10.66 billion) and Diamond Trust Bank (UGX8.88 billion).

Further down the ranking, I&M Bank generated UGX5.86 billion, Pride Microfinance UGX5.49 billion, Tropical UGX3.52 billion, Exim UGX3.20 billion and NCBA UGX2.95 billion.

Smaller contributions came from Opportunity Bank (UGX1.98 billion), FINCA (UGX1.79 billion) and Ecobank (UGX1.44 billion), while UGAFODE Microfinance recorded UGX74.7 million.

The figures show that although bancassurance is spreading across the banking sector, majority of insurance distribution remains concentrated among a handful of larger institutions.

Life insurance remains the backbone of bancassurance

Life insurance continues to dominate bancassurance activity, accounting for 79.49% of all premiums distributed through banks.

Centenary Bank recorded the largest life insurance portfolio at UGX48.16 billion, followed by Absa Bank (UGX42.60 billion) and Stanbic (UGX30.51 billion).

Other significant contributors included Dfcu (UGX18.61 billion) and Equity (UGX15.93 billion).

They were followed by Post Bank now Pearl Bank (UGX13.10 billion), Standard Chartered (UGX12.09 billion) and Housing Finance Bank (UGX11.29 billion).

Additional volumes came from Bank of Africa (UGX9.24 billion), Diamond Trust Bank (UGX8.36 billion) and Finance Trust (UGX7.29 billion).

KCB generated UGX5.20 billion, Pride Microfinance UGX4.77 billion, I&M Bank UGX3.56 billion and Tropical Bank UGX2.78 billion.

Among smaller lenders, FINCA recorded UGX1.77 billion, Opportunity Bank UGX1.51 billion, Exim Bank UGX1.37 billion and Ecobank UGX1.33 billion.

NCBA generated UGX713.43 million, while UGAFODE recorded UGX68.71 million in life premiums.

The dominance of life insurance reflects its close link to lending. In many cases, banks bundle credit life insurance with personal, SME and mortgage loans to protect both borrowers and lenders against default in the event of death or disability.

Non-life insurance plays a complementary role

Although life insurance dominates bancassurance activity, non-life insurance plays a complementary role, particularly in asset-backed lending.

By the end of 2025, banks had generated UGX61.99 billion in non-life insurance premiums.

Stanbic led the segment with UGX12.50 billion, reflecting strong activity in vehicle financing and corporate lending where insurance cover is mandatory.

Equity Bank followed with UGX8.00 billion, while Absa generated UGX7.28 billion.

Other major contributors included Dfcu (UGX6.24 billion) and KCB (UGX6.01 billion).

Further contributions came from Finance Trust (UGX3.37 billion), Housing Finance Bank (UGX2.85 billion), Bank of Africa (UGX2.54 billion) and I&M Bank (UGX2.3 billion).

NCBA generated UGX2.24 billion, Centenary Bank UGX2.09 billion and Post Bank now Pearl Bank UGX2.02 billion.

Additional contributions came from Exim Bank (UGX1.83 billion), Tropical Bank (UGX741.81 million) and Pride Microfinance (UGX718.44 million).

Diamond Trust Bank generated UGX523.6 million, Opportunity Bank UGX472.23 million, Standard Chartered UGX160.48 million and Ecobank UGX104.68 million.

FINCA generated UGX24.61 million, while UGAFODE recorded UGX5.99 million.

The relatively smaller size of non-life portfolios reflects the structure of bancassurance products, where coverage is typically tied to specific assets such as vehicles, equipment or property financed by banks.

Bancassurance commissions boost bank revenues

Bancassurance has also become an important source of non-interest income for banks through commissions paid by insurance companies.

Across the market, banks earned UGX42.71 billion in commission income from insurance distribution in 2025.

Stanbic recorded the highest commissions at UGX7.32 billion, followed by Absa (UGX6.88 billion) and Centenary (UGX4.53 billion).

Other leading earners included Dfcu (UGX4.01 billion) and Equity (UGX3.09 billion).

They were followed by Finance Trust (UGX2.78 billion) and Post Bank now Pearl Bank (UGX2.03 billion).

Diamond Trust Bank generated UGX1.71 billion, KCB UGX1.68 billion, Housing Finance Bank UGX1.61 billion and Standard Chartered Bank UGX1.54 billion.

Bank of Africa recorded UGX1.48 billion, while I&M Bank generated UGX1.10 billion.

Smaller commissions were recorded by Pride Microfinance (UGX817.66 million), Tropical (UGX545.06 million), Exim (UGX397.75 million) and NCBA (UGX391.21 million).

Opportunity Bank earned UGX348.13 million, FINCA UGX310.53 million, Ecobank UGX135.80 million and UGAFODE UGX10.89 million.

The data underscores how bancassurance is becoming an increasingly important fee-based revenue stream as banks diversify beyond traditional lending.

A growing distribution channel

Data shows a steady expansion of bancassurance activity throughout 2025.

Total premiums rose from UGX69.76 billion in the first quarter to UGX84.26 billion in the fourth quarter, making the final quarter the strongest period of the year.

Life insurance premiums increased from UGX53.79 billion to UGX69.23 billion, reflecting stronger uptake of credit life and group life products distributed through banks.

Non-life premiums remained relatively stable, fluctuating between UGX14.74 billion and UGX16.25 billion per quarter before closing the year at UGX15.04 billion.

With more than UGX302 billion in premiums distributed through banks by the end of 2025, bancassurance has firmly established itself as one of the most important insurance distribution channels in Uganda.

And as the latest figures show, Stanbic Bank, Absa Bank and Centenary Bank remain at the centre of that growth, even as more lenders expand their presence in the market.