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Who are the top 10 non-life insurance companies in Uganda?

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Mr Latimer Mukasa, the Chief Executive Officer of MUA Insurance. The firm which rebranded in October 2018 is in the 7th position, having underwritten UGX18.54 billion. The firm however declared losses in 2018 of UGX889.69 million loss.

The top 10 non-life insurance companies, control 87.7% of the category, having underwritten UGX499.8 billion in premiums- out of a total of UGX569.96bn in non-life category premiums.

They are: Jubilee Insurance, UAP General Insurance, Sanlam General Insurance, Britam Insurance, Goldstar Insurance, ICEA General Insurance, MUA Insurance, Statewide Insurance, NIC General and APA Insurance in that order.

The insurance industry in Uganda in a snapshot. The industry is top-heavy with just 3 of 21 insurance firms – Jubilee, UAP and Sanlam controlling over 60% of the market

The top 10 non-life players grew their premiums by 12.2%, lower than the industry average growth- as life insurance continued to eat into non-life insurance.

According to the Insurance Regulatory Authority, non-life insurance accounted for UGX570 billion (66.6%), while life accounted for UGX216.9 billion (25.3%) and Health Membership Organisations (HMO’s) Shs69.1bn (8.1%). Dedicated micro insurance organizations underwrote Shs24.31 million.

Left-Right: Julius Magabe, the Regional Executive for Sanlam Emerging Markets (SEM), IRA Chief Executive Officer, Alhaj Kaddunabbi Ibrahim Lubega, Sanlam Insurance Uganda CEO Gary Corbit, and Junior Ngulube, CEO of SEM cut a cake during the company’s rebranding last year. The merger cum acquisition of Lion Assurance, by Sanlam in 2017 has propelled Sanlam General Insurance to the 3rd position with UGX 71.48 billion in premiums in 2018. The firm also recovered from a  UGX1.58 billion loss in 2017, to post a profit of UGX5.56 billion, becoming the 3rd most profitable firm in 2018.   

Life and HMOs grew faster than the industry at 28.7% and 31.3% respectively. The entire industry grew by 17.5% while non-life business grew by 12.36%

Two (2) companies underwrote premiums in excess of UGX100bn while nine (9) companies underwrote between UGX10 billion to UGX50 billion.  Six (6) companies underwrote premiums below UGX10bn while one company underwrote UGX1 billion.

Nine (9) companies made underwriting profits while 12 companies made underwriting losses. Total industry profitability stood at UGX39.7 billion while losses stood at UGX19.8 billion.

Top-heavy industry

The biggest chunk of the top 10, is controlled by the largest 5 insurance companies, who in between them control 71.95% of the market (UGX411.4 billion) – a growth of 12.73%. Like in the banking industry which is also top heavy, the industry is largely dominated by the top 3 players- Jubilee, UAP and Sanlam who in between them control nearly 60% of the entire market.


The top 10 non-life insurance companies, control 87.7% of the category, having underwritten UGX499.8 billion in premiums- out of a total of UGX569.96bn in non-life category premiums. Two (2) companies underwrote premiums in excess of UGX100bn while nine (9) companies underwrote between UGX10 billion to UGX50 billion.  Six (6) companies underwrote premiums below UGX10bn while one company underwrote UGX1 billion.

Such is the disparity that, Jubilee Insurance, the No.1 player- UGX146.6 billion in 2018 premiums, is bigger than the 15 insurance companies from the bottom of the table combined. The 14 companies, some of whom have been around for over a decade, together underwrote UGX136.6 billion in premiums.

The fastest growing company among the top 10 was Britam Insurance which grew written premiums by 29% from UGX44 billion in 2017 to UGX56.8 billion. Fast-growing Britam Insurance in 2017 briefly held the 3rd position, having overtaken Lion Assurance to occupy the position held by AIG Insurance which exited the market.

But following the November 2017 acquisition cum merger of fourth-placed Lion Assurance Company and fifth-placed Sanlam Insurance, created a stronger No.3 Sanlam.

AIG has since re-entered the market as a Greenfield operation.

The top 10 in numbers and profits

The Aga Khan owned Jubilee Insurance maintained its top position, growing premiums by 9.8% from UGX133.47bn to UGX 146.6 billion. Jubilee Insurance, also remained the most profitable insurance firm, increasing their underwriting profit by 69.25% from UGX10.5 billion in 2017 to UGX17.8 billion- accounting for 44.9% of the UGX39.66 billion profits, made by the 9 profitable firms.

MIXED FORTUNES: Nine (9) companies made underwriting profits while 12 companies made underwriting losses. Total industry profitability stood at UGX39.7 billion while losses stood at UGX19.8 billion.

UAP General Insurance was the 2nd biggest in premiums underwritten at UGX111.97 billion, up 8.29% from UGX103.4 billion in 2017. UAP was also the second most profitable, general insurance firm, increasing their net revenue by 122.4% from UGX4.86bn in 2017 to UGX10.82 billion.

UAP & Jubilee were the only 2 firms that underwrote premiums above UGX100 billion in 2017 and 2018.

Sanlam in the 3rd position with UGX 71.48 billion in premiums, also recovered from a  UGX1.58 billion loss in 2017, to post a profit of UGX5.56 billion, becoming the 3rd most profitable firm in 2018 as well.  

Britam Insurance, in the 4th position with UGX56.8 billion premiums was also the 4th most profitable firm, having increased their underwriting profit by 114.98%, from UGX1.39 billion to UGX2.98 billion.

Goldstar Insurance in the 5th position, underwrote UGX24.54 billion; their profit slightly reduced from UGX2 billion to UGX1.46 billion but remained the 5th most profitable insurance firm in 2018.

ICEA in the 6th position underwrote UGX21.91 billion, MUA Insurance in the 7th position underwrote UGX18.54 billion while Statewide Insurance in the 8th position, underwrote UGX16.47 billion.

NIC General in the 9th position underwrote UGX15.99 billion while APA Insurance in the 10th position, underwrote UGX15.49 billion.              

Four (4) of the top 10 companies by premiums, made losses. They are ICEA General Insurance whose loss position widened from UGX1.59 billion in 2017 to UGX2.47 billion, MUA Insurance who posted a UGX889.69 million loss, NIC General who narrowed their losses from UGX2.49 billion in 2018 to UGX1.08 billion and APA Insurance who went from a UGX1.11 billion profit in 2017 to a UGX632 million loss. 

Four (4) firms that are not in the top 10, but were profitable, include: Alliance Africa General Insurance that posted a UGX680.39 million, Statewide Insurance which posted UGX176.43 million profit, Excel Insurance that posted UGX115.94 million in profits and Rio Insurance, UGX29.81 million in profits.                 

Agricultural insurance struggles to grow

A total of UGX 5.24bn was underwritten in 2018 under the Uganda Agricultural Insurance Scheme (UAIS) compared to UGX 5.20bn in 2017.

This was against the sum insured of UGX 387bn in 2018 and UGX 235.7bn in 2017.

UAIS) a Public Private Partnership (PPP) arrangement with Uganda Insurers Association (UIA), the Government of Uganda that subsidises premiums for farmers for a five (5) year period starting in FY 2016/17. 

Total Claims paid amounted to UGX 2bn (with Poultry accounting for over 67.3%) compared to UGX 1.9bn and multi-peril crop insurance accounting for 84%) in 2017 claims. The scheme has grown coverage from about 5,000 farmers in 2015/16 to an expected coverage of 100,000 farmers by the end of FY 2018/19.

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Kwame Ejalu’s Kent Holdings, acquires Alexander Forbes’ Ugandan unit; rebrands to Zamara

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Zamara Group’s logo; now the new face of Alexander Forbes Uganda, who have rebranded into Zamara Uganda

Alexander Forbes Financial Services Uganda Limited is now Zamara Actuaries, Administrators and Consultants (U) Limited.

This follows the ongoing exit of the South African financial services group from Uganda and the sale of their 51% stake in Uganda to Kent Holdings Limited- a Ugandan financial services group with interests in insurance brokerage and pensions management.

The two companies affirmed the sale, in a joint statement on August 21st, by Bonga Mokoena the Alexander Forbes Emerging Markets (AFEM) Chief Executive Officer and Kwame Ejalu, the Kent Holdings Limited Chairman.

Kwame Ejalu, the Kent Holdings Limited Chairman wields a rich experience in Uganda’s financial services industry. The Kent/Zamara partnership blends Kent Holdings’ 22 years of local experience and strategic leadership with Zamara’s 23-year African heritage and technical capacity

“Alexander Forbes Emerging Markets (AFEM) and Kent Holdings are pleased to announce that an agreement has been reached on a sale of shares to Kent Holdings Limited. On 2 July 2019, a sale of shares agreement was executed in terms of which, AFEM sold 51% in Alexander Forbes Financial Services Uganda Limited, to Kent Holdings Limited, a co-shareholder in Alexander Forbes Financial Services Uganda Limited,” read the statement.

Kent Holdings, previously owned 49% of the Ugandan operations.  

The statement however said that “the sale of shares agreement is subject to fulfilment of conditions precedent.”

“The terms and conditions of the sale agreement remain confidential,” both executives announced, but confirmed that Alexander Forbes has effected a name change and will now be known as Zamara Actuaries Administrators and Consultants (Uganda) Limited.

The name change was gazetted on 17th July 2019.

“Alexander Forbes Financial Services (Uganda) Limited, has been by a special resolution passed on 10th July 2019 and with the approval of the registrar of companies changed its name to Zamara Actuaries Administrators and Consultants Limited- 17th July 2019,” reads General Notice No. 762 of 2019, extracted from the Gazette.

Miriam Ekirapa Musaali, the Zamara Uganda Chief Operating Officer. She possesses over 11 years in Uganda’s capital markets industry- where she rose to the Director Market Supervision role at Uganda’s capital markets regulator – Capital Markets Authority, from whence she became the Alexander Forbes Uganda (Now Zamara Uganda) COO and Head of Business for slightly for slightly over 2 years. She says, the name change shall not in any way impede the quality of service as the team remains the same “enthusiastic, energetic, creative” team.

In a separate announcement, media announcement run in the local dailies, Zamara also confirmed their entry into the Ugandan market, promising that they called “fresh perspective in the delivery of financial services in Africa.”

Who is Zamara?

According to their media announcement, the Zamara Group is a specialised financial services group providing actuarial advice and retirement administration solutions in financial services, umbrella retirement solutions, investment and risk sectors to individuals, corporates, parastatals and retirement fund clients. 

The firm currently administers assets in excess of KSh. 280 billion an equivalent of UGX 9.995 trillion and is the only actuarial, consulting, accounting and pension administration firm in Kenya to be ISO 9001:2015 certified.

Zamara Group Executive Director , James Olubayi

Uganda is the sixth Zamara operation after Kenya, Nigeria, Rwanda, Tanzania and Malawi. Zamara started operations in Kenya over 23 years ago as Hymans Robertson and later changed to Alexander Forbes (East Africa) Limited before renaming to Zamara Actuaries, Administrators and Consultants Limited, following the exit of Alexander Forbes from the Kenyan market in 2017.

For four consecutive years, Zamara, their umbrella fund, the Zamara Fanaka Retirement Fund (formerly Alexander Forbes Retirement Fund) and Zamara Vuna Pension Plan (formerly Alexander Forbes Vuna Pension Plan), Zamara’s individual pension plan have been variously awarded in Kenya’s Think Business Awards.  

A brand that embodies a fresh perspective on the delivery of financial services

Commenting on the entry of Zamara into Uganda, Kwame Ejalu, the Kent Holdings Chairman said: “We are enthusiastic about this partnership between Kent Holdings and Zamara Group as it marks the entry into Uganda, of a formidable brand that embodies a fresh perspective on the delivery of financial services in Africa. This partnership blends Kent Holdings’ 22 years of local experience and strategic leadership with Zamara’s 23-year African heritage and technical capacity, to deliver innovative and excellent services to our clients, underpinned by simplicity, empathy and trust,” adding: “Zamara Uganda will now add to our portfolio pan-African expertise, actuarial services and other online solutions that we previously did not offer.”

Asked if Zamara had acquired the stake, previously held by Alexander Forbes, he said he would comment on this after “the Alexander Forbes-Kent Holdings transaction is fully complete and all conditions precedent are fulfilled.”

Ejalu however said that Zamara Uganda inherits and will continue to run a managed private pension funds sector in Uganda and managed assets under administration portfolio in excess of UGX380 billion- roughtly 40% sector market share.

James Olubayi, the Zamara Group Executive Director said that the Zamara Group looked at Uganda as “one of the key strategic regions in the market for growth of the group.”

“Zamara aims to elevate the quality of advice and solutions offered to stakeholders and inevitably be a game changer for clients it serves in Uganda. We look forward to the extended partnership with Kent Holdings, clients, stakeholders across Africa,” he said.

Miriam Ekirapa Musaali, Chief Operating Officer, Zamara Uganda who previously was the Alexander Forbes COO said “We remain the same enthusiastic, energetic, creative team that is committed to serving our clients in Uganda. We will no doubt continue to offer superior consulting, advisory and administration services to pension funds in Uganda and further enhance our offering and advice to truly world class levels.”  

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Finance

Stanbic Bank scoops June/July best gov’t securities dealer award

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The Governor Prof. Emmanuel Tumusiime-Mutebile has given an award to Stanbic Bank Uganda (LTD) for being the best performing bank in dealing government securities for the months of June and July 2019. The award was received by Stanbic Bank CEO Mr. Patrick Mweheire during the quarterly Uganda Bankers Association (UBA) meeting at BoU headquarters in Kampala.

Governor BOU Prof. Emmanuel Mutebile(L) and Patrick Mweheire(R), CEO Stanbic Bank Uganda(LTD) at the do

The bank has been recognised by the regulator for its role in the primary dealer system that helps in developing Financial Markets and in reducing the costs associated with issuing Government Securities; through increasing demand, market efficiency, encouraging secondary market trading and improving the quality of Financial Market information.

A primary dealer is a pre-approved bank, broker or financial institution that is able to lend money to the government through treasury bonds and treasury bills. 

Background information on best performing banks in government securities award

In January 2005, the Bank of Uganda initiated the “Award for the Best Performing Primary Dealer in Uganda Government Securities for the Month” to recognize the Primary Dealer that performed best in trading Uganda Government Securities and transmitting information regarding the status of the financial markets to the Central Bank.

A Primary Dealer is any financial intermediary that has signed a Memorandum of Understanding with the Bank of Uganda to execute the following actions on a consistent basis:

§ To participate as counter-party in Uganda Government securities auctions conducted by the Bank of Uganda.
§ To provide the public with prices or yields that they will buy and sell “On-the Run” (the most recently auctioned) Uganda Government securities. i.e. Treasury bills and Treasury bonds on a continuous basis.
§ To provide the public with prices or yields that they will buy Off-the-Run (Other than the most recently auctioned) Uganda Government securities on a continuous basis.
§ To trade with the public Uganda Government securities at the prices or yields that they have quoted.
§ To make available information on the status of the market to the Bank of Uganda on a timely basis.

The points allocated for the Award to the Best Performing Primary Dealer in Uganda Government Securities for the Month are aggregated to determine the winner of the prestigious award.

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dfcu Bank’s H1 profit declines by 14% to UGX35.7 billion

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Interim H1 2019 results for dfcu Bank HY are out, indicating a 14.3% decline in net profit to UGX35.7 billion down from UGX41.6 billion in the same period in 2018.

Deposits declined by 1.5% from UGX2.02 trillion to UGX1.99 trillion while lending went down by 3.8% from UGX1.4 trillion to UGX1.36 trillion.

As a result, the bank’s asset book declined by 2.7% from UGX3.03 trillion to UGX2.95 trillion.

This is the first 6 months of new Managing Director’ Mathias Katamba’s firm grip on the bank, since he assumed full reigns in January this year.

However, compared to December 2018, there was a slight 1.3% growth in assets from UGX2.91 trillion to UGX2.95 trillion. Deposits also registered a slight 0.6% rise to UGX2.02 trillion, from UGX1.97 trillion.

dfcu yet to recover from 2018

dfcu bank, now Uganda’s fourth largest bank with about 10% of industry assets is yet to recover from what analysts say was a hard 2018.

Customer deposits largely remained flat, declining 0.4% from UGX1.99 trillion to UGX1.98 trillion. Lending went down 4.8% from UGX1.33 trillion to UGX1.4 trillion.

Full year profits took a 51.6% hit, reducing from UGX127.6 billion to UGX61.7 billion.

Assets declined 4.7% from UGX3.03 trillion to UGX2.89 trillion.

dfcu’s not-so rosy performance, has had an impact on its share price. Share price rose from UGX681 at the beginning of January 2018, rising 42.4% to hit a climax of UGX970 on 17th July 2018 but closed December 2018 at UGX822.97- a reduction of 15%.

Since the year began, dfcu share price has continued in a free-fall, dropping a further 21%, to UGX650 as of today, August 22nd 2019.   

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