2006 Annual Insurance Market Report
VISION AND MISSION
Vision
A Commission that excels in fostering a sound and stable insurance sector through objective, professional and regulatory guidance to all stakeholders for the economic development of Uganda.
Mission
To ensure a sound and stable insurance industry.
MAIN INSURANCE LAW
The main law governing insurance business in Uganda is The Insurance Act, (Cap 213) Laws of Uganda, 2000 (Insurance Act).
Uganda Insurance Commission i 2006 Annual Insurance Market Report
TABLE OF CONTENTS
TABLE OF CONTENTS ………………………………………………………………………………….ii LIST OF TABLES …………………………………………………………………………………………iv LIST OF GRAPHS AND CHARTS ……………………………………………………………………….iv LIST OF ACRONYMS ……………………………………………………………………………….…v SOME ECONOMIC INDICATORS – 2005 & 2006 ………………………………………………………v EXECUTIVE SUMMARY………………………………………………………..………………………..vi
1.0 CORE ACTIVITIES OF THE COMMISSION IN THE YEAR UNDER REVIEW (2006) .. 1
1.1 Licensing ...... 1 1.2 Classification of insurance business ...... 2 1.3 Inspections ...... 3 1.4 Offences ...... 3 1.5 Amendments to the insurance legislation ...... 5 1.6 Major developments in the Commission and industry in general ...... 5 1.7 Complaints handling ...... 7 1.8 Circulars ...... 7
2.0 INSURANCE INDUSTRY PERFORMANCE ...... 10
2.1 Insurance companies ...... 10 2.1.1 Gross premium income: Non-Life ...... 10 2.1.2 Gross premium income: Life ...... 13 2.1.3 New products on the market ...... 17 2.1.4 Number of insurance policies ...... 18 2.1.5 Estimated number of individuals benefiting from insurance...... 19 2.2 Reinsurance ...... 19 2.2.1 Retention ratio...... 20 2.3 Net earned premiums ...... 21 2.4 Claims experience ...... 22 2.4.1 Loss ratios ...... 24 2.4.2 Big claims ...... 24 2.5 Expense ratio...... 25 2.6 Return on equity...... 25 2.7 Solvency margin ...... 25 2.7.1 Solvency coverage ...... 26 2.8 Insurance market penetration ...... 26 2.8.1 Continental perspective ...... 27 2.9 Employment in the insurance industry ...... 28 2.10 Insurance brokers’ performance ...... 28
3.0 INSURERS’ CONSOLIDATED BALANCE SHEETS - 2006 ...... 30
3.1 Non-Life business ...... 30 3.1.1 Current asset ratio - Non-Life ...... 31 3.2 Life business ...... 32 3.2.1 Current asset ratio - Life ...... 33
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4.0 GENERAL OBSERVATIONS/RECOMMENDATIONS ...... 34
5.0 SOURCES OF INFORMATION, DEFINITION OF SOME INSURANCE TERMS, AND REFERENCES ...... 36
5.1 Sources of information ...... 36 5.2 Definition of some insurance terms ...... 36 5.3 References ...... 39
STATISTICS TABLES ...... 40 Gross premium – 2006 ...... 41 Reinsurance premium ceded-2006 ...... 42 Loss ratios - 2006...... 43 Net premium –2006 ...... 44 Net earned premium –2006 ...... 45 Net incurred claims –2006 ...... 46 Retention ratio – 2006 ...... 47 Reinsurance ratio – 2006 ...... 48 Expense ratio - Non-Life (2006) ...... 49 Expense ratio - Life (2006) ...... 50 Return on equity - Non-Life (2006) ...... 51 Number of policies issued (New) – 2006...... 52 Number of policies (Renewals) – 2006 ...... 53 New Non-Life number of group policies – 2006 ...... 54 New Non-Life number of individuals covered by group policies – 2006 ...... 55 New Life number of individuals covered by group policies – 2006 ...... 56 Life number of individuals covered by group policies – Renewed for 2006 ...... 56 Non-Life number of group policies – Renewed for 2006 ...... 57 Non-Life number of individuals covered by group policies – Renewed for 2006 ...... 58 Insurance companies’ balance sheet (Non-Life) – as at 31st December 2006 ...... 59 Insurance companies’ balance sheet (Life) – as at 31st December 2006 ...... 67 Non-Life current asset ratio - (2006) ...... 70 Life current asset ratio - (2006) ...... 71 Insurers’ solvency margin - 2006 ...... 72 Companies’ market share – 2006 ...... 73 Insurance brokers’ performance – 2006...... 74 Big claims (Ushs. 20 million plus) registered by insurance companies - 2006 ...... 75
LIST OF APPENDICES ...... 80 Appendix I: Organisation structure of the Commission as at 31st December 2006 ...... 81 Appendix II: List of licensed insurance companies as at 31st December 2006 ...... 82 Appendix III: List of licensed insurance brokers as at 31st December 2006 ...... 84 Appendix IV: List of licensed Loss Assessors, Adjusters and Surveyors as at 31st December 2006...... 87
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LIST OF TABLES
Table 1: Number of licensed Intermediaries, Risk Managers, Loss Assessors, Loss Adjusters, Insurance Surveyors and Claims Settling Agents (2002 - 2006) ...... 1 Table 2 (a): Contraventions of the Insurance Act during the year 2006 ...... 4 Table 2 (b): Contraventions of the Insurance Act since 2001 ...... 4 Table 3: Nature and number of complaints - 2002 to 2006 ...... 7 Table 4: Non-Life premium ...... 10 Table 5: Life premium ...... 10 Table 6: Life and Non-Life premium [Tables (4 + 5)] ...... 11 Table 7: Non-Life premium by class and %-age share of each class ...... 11 Table 8: Percentage change by class: Non-Life ...... 12 Table 9: Estimated No. of motor vehicles on the road ...... 13 Table 10: Life premium by class ...... 13 Table 11: Percentage change by class -Life ...... 14 Table 12: Percentage share by class -Life ...... 14 Table 13: Number of new policies issued and renewals (2005 & 2006) ...... 18 Table 14: Reinsurance premium ceded (2002 - 2006) by class of business ...... 19 Table 15: Retention ratios -Non-Life ...... 20 Table 16: Retention ratios – Life ...... 20 Table 17: Non-Life net earned premium ...... 21 Table 18: Life net earned premium ...... 21 Table 19: Non-Life net incurred claims ...... 22 Table 20: Life net incurred claims ...... 22 Table 21: Non-Life loss ratios ...... 24 Table 22: Life loss ratios ...... 24 Table 23: Market penetration ...... 26 Table 24: 2006 premiums & GDP of selected African countries...... 27 Table 25: Employment in the insurance industry ...... 28 Table 26 (a): Total premium generated by brokers ...... 28 Table 26 (b): Amount of commission earned by brokers ...... 29
LIST OF GRAPHS AND CHARTS
Chart 1: Distribution of gross premium by class: Non-Life (2006) ...... 12 Chart 2: Percentage share by class: Life - 2006 ...... 14 Graph 1: Trend of Non-Life gross premium by class (1996 – 2006) ...... 16 Graph 2: Trend of Life gross premium by class (1996 – 2006) ...... 17 Chart 3: Non-Life earned premiums Vs. Net claims incurred – 2006...... 23 Chart 4: Life earned premiums Vs. Net claims incurred – 2006...... 23
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LIST OF ACRONYMS
ACII : Associate of the Chartered Insurance Institute DAP : Deposit Administration Plan GDP : Gross Domestic Product IAIS : International Association of Insurance Supervisors IBNR : Incurred But Not Reported IT : Information Technology LIFE INDIV. : Life Individual MARINE/AV. : Marine/Aviation MISC. ACCIDENT : Miscellaneous Accidents MTP : Motor Third Party NSSF : National Social Security Fund UIA : Uganda Insurers Association USHS : Uganda Shillings
Note: Throughout this report, unless otherwise stated, the currency is indicated in Uganda shillings.
SOME ECONOMIC INDICATORS – 2005 & 2006 Economic indicator 2005 2006 GDP at factor cost at current prices Ushs. 16,268,320 million Ushs. 18,608,430 million Per capita GDP Ushs. 614,024 Ushs. 680,210 GDP growth rate (real growth) 6.3% 6.8% Inflation rate (headline) 8.5% 7.3% Total population 26.5 million 27.3 million The Ushs/US$ exchange rate (annual) 1 US$ ≡ Ushs. 1780.7 1 US$ ≡ Ushs. 1,831.45 Source: 2006 & 2007Statistical Abstract (Uganda Bureau of Statistics)
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EXECUTIVE SUMMARY
Introduction The Uganda Insurance Commission (Commission) is happy to come up with the seventh Annual Insurance Market Report.
Economic review There was relative growth registered in most sectors of the economy compared to 2005. The GDP rose by virtually the same margin that it did in 2005 i.e. from Ushs. 16,268,320 million in 2005 to Ushs. 18,608,430 million in 2006, an increase of 14.38% (2005: 14.85%). This gave rise to a GDP real growth rate of 6.8%. The country’s total population rose by 1.87% from 26.5 million in 2005. The rate of inflation considerably dropped from 8.5% to 7.3% in 2006.
Insurance industry review Like was the case in 2005, the number of licensed insurance players virtually remained the same in 2006, save for insurance agents whose number increased by 85 from 351 in 2005. The position of the shareholding structure of the insurance companies also, remained as that for 2005.
The insurance industry’s gross premium registered a 13.44% growth from the 2005 position of Ushs. 90,179 million. The Non-Life figure was Ushs. 96,494 million and the Life figure was Ushs. 5,800 million. Like was the case in 2005, Table 7 shows that Miscellaneous Accident class was the major contributor to the Non-Life category, followed by Motor and Fire.
For Life business, the class-wise performance was the same as that for 2005 i.e. Life Group was the major contributor followed by DAP. Individual-wise, Table 11 shows that the other two Life classes registered positive growth. For DAP, it continued to falter falling by 44.45% from the 2005 position.
The above insurance industry performance gave rise to a market penetration rate which was virtually the same as that which has prevailed in the last five years. Table 23 reveals that even
Uganda Insurance Commission vi 2006 Annual Insurance Market Report many other African countries experienced reductions in their respective penetration rates compared to the 2005 position.
Insurance legislation amendment. In addition to what we reported in the 2005 report, the year under review witnessed continued liaison between the Commission and the Ministry of Finance, Planning and Economic Development (Ministry) to establish developments relating to the insurance legislation proposed amendments. As at the end of the year, it was learnt that progress was being made for the eventual submission of proposals to Cabinet. However, it was also learnt that the Commission and/or the insurance players’ professional Associations could still submit further proposed amendments.
New products on the market As a result of the continued Commission’s effort to encourage players to revive Life assurance business and to overhaul, modernise and come up with products which satisfy consumers’ needs better, there has been, even during the year under review, introduction of new and/or re-branded products. These included: The Ladies Insurance Protection Scheme; The Business Travel insurance; The Motorcycle (Boda-Boda) Accident Insurance Policy; Dividend Plus Plan; Estate Comprehensive Policy; Group Mortgage Protection plan; Micro- finance care policy; Morecare insurance policy; Personal Pension & Annuity-plus plan; etc
Employment in the insurance industry In the year under review, there was an increase of 1.7% in the number of employees in the insurance industry from 1,108 in 2005.
Insurers’ balance sheet In the year under review, there was a slightly lower percentage increase of 14.81 (2005:18.29) in the insurance companies’ Non-Life net assets than was the case in 2005. In absolute terms, these assets rose to Ushs. 86,435 million in 2006 from Ushs. 75,283 in 2005.
For Life insurance business, the net assets rose by 3.13% from Ushs. 2,440 million in 2005 to Ushs. 2,517 million in the year under review (section 3.2, refers)
Uganda Insurance Commission vii 2006 Annual Insurance Market Report
1.0 CORE ACTIVITIES OF THE COMMISSION IN THE YEAR UNDER REVIEW (2006)
During the year ended December 2006, the core activities of the Commission included: licensing; on/off-site inspection and surveillance of insurance players’ affairs; reviewing and drafting improvements on the pertinent insurance legislation; staff capacity building; rendering advisory services to the insurance players and the public at large; issuing guidelines to players on pertinent issues from time to time; keeping track of the evolving IAIS insurance core supervision principles and endeavouring to comply with them; handling of complaints by the Complaints Bureau; gathering and publishing industrial statistical information; etc. More details on some of these activities are given below.
1.1 Licensing
All the nineteen (19) insurance companies which operated in 2005 were re-licensed for 2006. Fourteen (14) of these transacted only Non-Life insurance business and the remainder, transacted both Non-Life and Life business.
In the year under review, the insurance companies’ shareholding structure was the same as that of 2005. Thus, the number of foreign owned insurance companies remained eleven (11), and the locally owned ones remained eight (8). Additionally, Government continued to retain a stake of 40% in National Insurance Corporation Ltd.
Table 1: Number of licensed Intermediaries, Risk Managers, Loss Assessors, Loss Adjusters, Insurance Surveyors and Claims Settling Agents (2002 - 2006)
Number licensed Type of Operator 2002 2003 2004 2005 2006 Brokers 31 24 24 22 23 Agents 249 277 310 351 436 Loss assessors/adjusters/ Insurance surveyors 8 8 11 12 11
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Other than the insurance agents whose number registered a 22.22% increase from 351 in 2005 to 436 in 2006, the number of other licensed insurance operators virtually remained static as Table 1 illustrates. On the other hand, we have not had any licensed Risk Managers and Claims Settling Agents, to-date.
Two loss assessing/adjusting companies ceased operations and there was one new entrant in the market. As for brokers, one firm ceased its operations and there were two new entrants.
The licence fees for the various insurance players have remained unvaried since their promulgation on the 11th October 2002.
1.2 Classification of insurance business
As per section 5 of the Insurance Act, the insurance business for which the insurance players continued to be licensed, comprised: (a) Life insurance (b) Non-Life insurance i.e. (i) fire insurance; (ii) burglary insurance; (iii) personal accident insurance; (iv) employers liability insurance; (v) public liability insurance; (vi) marine hull insurance; (vii) marine cargo insurance; (viii) aviation insurance; (ix) motor vehicle insurance; (x) crops, fishing and livestock insurance; (xi) bonds; (xii) contractors all risks insurance; (xiii) machinery breakdown and installation, boiler explosion insurance; (xiv) any insurance other than specified above; and
(c) reinsurance business in respect of any of the foregoing classes.
Life insurance business is broken down into Life Individual, Life Group and Deposit Administration Plans.
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1.3 Inspections
The Commission during the year under review inspected 14 insurance companies, 36 brokerage firms (some being inspected twice), 83 agency offices and 2 office premises (one for an insurer and another for a broker). Additionally, there was off-site inspection and analysis of the year 2005 annual reports/returns for 19 insurance companies, 23 brokerage firms and 11 loss assessors/adjusters.
The insurance legislation instruments provide for on-site inspection of insurers to be carried out at least once in three years although they can be carried out more often, depending on the necessity. During on-site inspection of players’ operations we, inter- alia, stressed: the need for them to write anti-money laundering policies along the guidelines we distributed during 2005; the suitability of agency office premises in line with the Commission’s specifications; the display of certified copies of operating licences for the benefit of the insuring public; etc.
Furthermore, we sampled the appropriateness of the premiums charged; examined solvency positions, liquidity levels, liquid assets, debt position and paid-up capital positions; instances of technical insolvencies; delayed topping up/effecting of statutory deposits; lack of key personnel/staff turnover; adequacy of facultative reinsurance; illegal opening/closing of branch and agency offices; inadequate accounting records; etc. Where applicable, remedial measures were prescribed and where they were not implemented, appropriate action was taken.
1.4 Offences
As was the case in the year 2005, the more notable offences during 2006 included delayed submission of the 2005 audited accounts and financial statements and undercutting.
Appropriate admonitions and/or sanctions were accordingly administered to the concerned players. Table 2 (a) shows the nature of offences committed during 2006 compared to those of 2005.
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Table 2 (a): Contraventions of the Insurance Act during the year 2006
Insurance operator Nature of offence No. of 2005 No. of 2006 offenders offenders Undercutting insurance premium - 3 rates Insurance companies Failure to submit audited accounts 1 4 on time (Section 49). Insurance brokers Failure to submit audited accounts 17 16 on time [Section 83(1)]. Loss assessors/adjusters Failure to submit audited accounts 9 6 etc. on time [Section 83(2)].
Table 2 (b) shows the nature and trend of offences committed by insurance operators over a period of six years.
Table 2 (b): Contraventions of the Insurance Act since 2001
Insurance operator Number per year Average Nature of Offence 2001 2002 2003 2004 2005 2006 Number Insurers Employing unlicensed intermediaries 6 5 - 1 1 - 2 Failure to submit Accounts timely 11 5 5 10 1 4 6 Brokers Failure to submit Accounts timely 26 6 6 20 17 16 15 Loss Assessors/Adjusters Failure to submit Accounts timely 10 2 1 7 9 6 5
From Table 2 (b) it is clear that over the years, the main offences have been failure by the players to submit accounts within the Statutory period as well as utilizing of unlicensed intermediaries. The offence of late submission of accounts and returns is more pronounced with brokers than with other players. Since 2004, at least 70% of the brokers commit that offence, annually. Additionally, over the years there have been intermittent cases of undercutting of the premium rates by the insurance companies.
As already indicated, the Commission continued in its efforts to eliminate such offences through admonition and imposition of fines. As the amounts of statutory fines which were legislated at the inception of the Commission in 1996 are no longer punitive enough, higher quantum penalties were among the proposed amendments to the Insurance Act which were presented to the Ministry of Finance, Planning and Economic Development (Ministry) for possible enactment (section 1.5 refers).
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1.5 Amendments to the insurance legislation
Throughout the year under review, the Commission continued to liaise with the Ministry to establish developments relating to the insurance legislation proposed amendments that we reported on in the 2005 Insurance Market Report. As at the end of the year, it was learnt that progress was being made for the eventual submission of proposals to Cabinet. However, it was also learnt that the Commission and/or the insurance players’ professional Associations could still submit further proposed amendments. On the other hand, pursuit of Uganda Insurers Association (UIA)’s proposals for premium rates to match the proposed MTP compensation limits continued to await Government’s approval of the recommended limits.
1.6 Major developments in the Commission and industry in general
The notable activities and/or developments in the Commission and industry in general included the following: A prospective Zambian investor commenced on the formalities for incorporating and licensing of a Life insurance company. A prospective Namibian investor filed an application to be licensed as a legal expenses insurer. In early 2006, Bank of Uganda (Bank) decided to recruit a Fund Manager to invest insurance players’ security deposits pending the amendment of the Insurance Act to relieve the Bank of its obligation to invest such funds, which tends to conflict with its core function of formulating and implementing monetary policy. In this connection, the Bank requested the Commission to review the draft proposed terms and conditions of engaging a Fund Manager and by close of the year, arrangements were ready for advertising the job. The three-year term of office of the Third Commission (Board) expired in May 2006. A new Board was appointed in August 2006, and it was inaugurated by Hon. Fred Jachan Omach Mandir, Minister of State for
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Finance, Planning and Economic Development (General Duties), in September 2006. The year under review saw the drafting of a Memorandum of Understanding on Consolidated Supervision (Information Exchange) amongst the Bank of Uganda, Capital Markets Authority, and the Commission. The Commissioner for Insurance and the Legal Officer attended the 13th IAIS Annual Conference and General Meeting, which were held in Beijing, China, during 18th to 21st October 2006. In the year under review, the Commission continued with its search for a Consulting Actuary who would, inter alia, undertake the research into the operations of Health Management Organisations (HMOs) and to recommend how they should be regulated. In this connection, the Commission (Board) in November 2006, decided to contact three actuarial firms in Kenya for quotations. By the close of the year, the firms were in the process of submitting their quotations. In May 2006, the Commission submitted to the Minister of Finance, Planning and Economic Development the proposed Insurance Regulations for the investment of insurers’ paid-up capital and insurance funds. In October 2006, the Minister authorized the Commission to issue a Statutory Instrument. In December 2006, we sent a copy to the First Parliamentary Counsel, Ministry of Justice and Constitution Affairs, for clearance before gazetting by the Commission. The four-year grace period which was extended to the then licensed insurance players to comply with the enhanced minimum paid-up capital: for insurers and reinsurers; minimum paid-up capital and security deposits: for insurance brokers; and Professional Indemnity insurance policy: for loss adjusters and loss assessors all of which were reported on in the 2005 Insurance Market Report, expired on 16th August 2006. All the concerned insurance players were fully compliant.
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1.7 Complaints handling
The Commission through its Complaints Bureau continued to receive and resolve complaints from members of the public. This statutory means of conflict resolution continued to be faster and cheaper than court proceedings. It has, also, continued to help restore amicable relations between complainants and insurance players besides helping safeguard the rights of policyholders and beneficiaries to insurance contracts. Table 3 shows that during the year 2006, the aggregate number of complaints was slightly above the five-year average of 39.2. The cases received were given due attention and, as such, some were settled, some were referred to other alternative dispute resolution mechanisms, others remained pending, and yet some were not payable. However, like in the past years, delayed claims settlement accounted for the biggest number, followed by non-fulfillment of obligations under the insurance contract.
Table 3: Nature and number of complaints - 2002 to 2006
Nature of complaint Number of complaints 2002 2003 2004 2005 2006 Delay in settling claims 17 15 24 21 24 Disagreement over amount offered for 4 - 1 1 04 settlement of claims Outstanding premium - 2 2 1 02 Failure by brokers in their - - - 3 04 responsibilities Non-fulfillment of obligations under 17 7 19 7 06 the Insurance contract Outstanding professional fees - 2 - 2 01 Miscellaneous 5 1 - 3 01 Total 43 27 46 38 42
1.8 Circulars
The Commission continued to communicate with insurance players for the continued maintenance of harmonious relationship. This was implemented through avenues which included issuing circulars that were informational; reminded players of the statutory performance deadlines; communicated operational procedures to be followed by players; etc.
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Date Addressed to Subject matter/Title 25/01/2006 All Insurance companies Investment Statements as at 31st December 2005 17/02/2006 All Insurance brokers Annual Reports and Financial Statements All loss assessors/adjusters
17/02/2006 All Insurance companies M/s Kavuma and Associates; M/s S- Consult 28/02/2006 All Insurance companies Quarterly Reconciliation Statements with brokers 3/03/2006 All Insurance companies Accounts, etc to be furnished to the Commission; Publication of the Balance Sheet Statutory Instruments under section 79 (3) 24/03/2006 Some insurance brokers of the Insurance Statute, 1996 (now, The Insurance Act (Cap 213) Laws of Uganda, 2000) All Insurance companies Annual Insurance Market Report 2004 27/03/2006 All Insurance brokers (Report) All loss assessors/adjusters Inspection of your branch/agency offices 20/04/2006 All Insurance companies in Kampala, Entebbe, Mityana, Kireka and Mukono Industrial Review Journal: Corporate All Insurance companies Profile Reviewing the recent trends in the 21/04/2006 All Insurance brokers insurance sector on fast-track claims All loss assessors/adjusters settlement 22/05/2006 All Insurance companies Quarterly Reconciliation Statements with brokers: 1st Quarter - 2006 30/05/2006 All Insurance companies Inspection of your properties and branch/agency offices in Eastern, Western and Southern Uganda Submission of Annual Reports and 2/06/2006 Some insurance brokers Financial Statements for the year ending 31st December 2005 5/06/2006 All Insurance companies Field attachment of Bsc. Actuarial Science students 6/06/2006 All Insurance companies Publication of the Balance Sheet
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Date Addressed to Subject matter/Title Inspection of your properties and 8/06/2006 All Insurance companies branch/agency offices in Eastern, Western and Southern Uganda 16/06/2006 All Insurance companies Insurance industry statistics - 2005
16/06/2006 All Insurance companies Fibre Glass Kiosks for Third Party insurance 22/06/2006 All Insurance companies Non-Ugandan employees Inspection of your properties and 3/07/2006 All Insurance companies branch/agency offices in Eastern, Western and Southern Uganda 14/07/2006 All Insurance companies Catastrophic reinsurance protection 17/07/2006 All Insurance companies Security deposit statements as at 31st March and 30th June 2006 11/08/2006 All Insurance Brokers Licensing of insurance broking companies for the year 2007 11/08/2006 All Insurance companies Licensing of insurance companies for the year 2007 All Insurance companies Invitation to the inauguration of the fourth 4/09/2006 All Insurance brokers Commission (Board) All loss assessors/adjusters 1/11/2006 All Insurance companies Valuation of properties/assets All Insurance brokers 3/11/2006 All loss assessors/adjusters Invitation to valuers interested in valuing insurance players’ assets 16/11/2006 All Insurance companies Community Ambulance Foundation 28/11/2006 All Insurance companies Worldwide Insurance & Financial Services Ltd. (Worldwide)
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2.0 INSURANCE INDUSTRY PERFORMANCE
2.1 Insurance companies
Having dropped from 24.64% to 11.64% in the preceding two years, the industry’s total production in 2006 registered a percentage increase of 13.44%. Non-Life business continued to claim the usual lion’s share by accounting for 94.33% (2005: 94.26%) of the total gross direct premium written. Life business’s contribution was 5.67 % (2005: 5.74%).
Note: A total of 14 out of the 19 insurers that were licensed for 2006 wrote inward facultative reinsurance from their local counterparts. The volume of inward reinsurance premium transacted was negligible, i.e. only 1.26% of the gross written premium. Hence, the analysis of the figures based on gross premium rather than net premium (net of inward reinsurance) has negligible error.
2.1.1 Gross premium income: Non-Life
This section looks at the general trend in the growth of Non-Life premium income for a period of five years beginning with 2002 up to the year under review.
Table 4: Non-Life premium Year Gross premium (Ushs. ‘000) Increase/(Decrease) in absolute % terms (Ushs. ‘000) Increase/(Decrease) 2002 49,913,176 - - 2003 59,863,982 9,950,806 19.94 2004 75,784,187 15,920,205 26.59 2005 85,001,173 9,216,986 12.16 2006 96,494,673 11,493,500 13.52
Table 5: Life premium Year Gross premium (Ushs. ‘000) Increase/(Decrease) in % absolute terms (Ushs. ‘000) Increase/(Decrease) 2002 3,684,782 - - 2003 4,934,130 1,249,348 33.91 2004 4,970,659 36,529 0.74 2005 5,177,901 207,242 4.17 2006 5,800,924 623,023 12.03
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Table 6: Life and Non-Life premium [Tables (4 + 5)] Year Gross premium (Ushs. ‘000) Increase/(Decrease) in % absolute terms (Ushs. ‘000) Increase/(Decrease) 2002 53,597,958 - - 2003 64,798,112 11,200,154 20.90 2004 80,754,846 15,956,734 24.63 2005 90,179,074 9,424,228 11.67 2006 102,295,597 12,116,523 13.44
N.B: For purposes of this report, Non-Life business is categorized as shown below: Fire including Houseowners & Householders, Energy, Sabotage/Terrorism, Industrial All Risks; Marine including Aviation and Goods In Transit, ; Motor (Full Material Damage, Third Party and Third Party Property Damage extension); and Miscellaneous Accident (including Engineering, Workers Compensation, Group Personal Accident, etc).
Table 7: Non-Life premium by class (million Ushs.) and %-age share of each class Class 2002 2003 2004 2005 2006 Fire 8,767 9,864 14,499 13,765 16,746 17.57% 16.48% 19.13% 16.19% 17.35% Marine 4,542 5,367 6,873 7,151 7,431 9.10% 8.97% 9.07% 8.41% 7.70% Motor 16,736 19,851 23,964 29,518 30,889 33.53% 33.16% 31.62% 34.73% 32.01% Misc. Accident 19,868 24,781 30,448 34,566 41,429 39.80% 41.40% 40.18% 40.67% 42.93% Total 49,913 59,864 75,784 85,001 96,495 100% 100% 100% 100% 100%
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Table 8: Percentage change by class: Non-Life Class 2002-2003 2003-2004 2004-2005 2005-2006 Fire 12.51 46.99 (5.06) 21.66 Marine 18.16 28.06 4.05 3.91 Motor 18.61 20.72 23.18 4.64 Misc. Accident 24.73 22.87 13.52 19.85 Industry average 19.94 26.59 12.16 13.52
(i) As has been highlighted in section 2.1, in Table 4 above, the year under review registered a low Non-Life business percentage increase of 13.52.
(ii) Despite registering a negative growth for 2004 to 2005, Fire emerged the best performing class for 2005 to 2006 with a growth of 21.66%. This was followed by the Miscellaneous Accident class with a growth of 19.85%, and the Marine class registered the least growth.
(iii) On a class-wise basis, Table 7 above and Chart 1 below show that the usual dominant classes i.e. Miscellaneous Accident and Motor contributed most to the Non-Life business.
Chart 1: Distribution of gross premium by class: Non-Life (2006)
Fire 17% Misc. Marine Accident 8% 43%
Motor 32%
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Table 9: Estimated No. of motor vehicles on the road Year Heavy Pick Ups Buses Mini Cars Motor Agric Others Total %age Trucks & 4WD Buses Cycles Tractors Change
2002 15,719 45,472 836 18,006 54,173 71,229 2,291 1,552 209,278 3.85 2003 16,122 48,528 846 19,726 56,837 80,088 2,421 1,623 226,191 8.80
2004 17,530 52,685 878 22,565 59,786 89,212 2,574 1,815 247,045 9.22 2005 18,684 53,203 868 27,568 65,472 108,207 2,717 1,876 278,595 12.77
2006 20,496 53,137 857 32,006 70,652 133,985 2,778 1,991 315,903 13.39 Source: Statistical Abstract – 2007: Uganda Bureau of Statistics
Like in the previous three years, the year 2006 also registered a significant increase in the number of motor vehicles on the road, i.e. from 278,595 in 2005 to 315,903 in 2006 (Table 9 refers). The number of motor vehicles on the road is likely to greatly increase if Government’s intended policy to scrap road licences materialises during the 2007/2008 financial year. It is expected that motor vehicles which used to avoid public highways so as to evade the payment of road licences will now freely access the roads. This is likely to increase the mandatory Motor Third Party sticker premiums.
Type-wise, Motorcycles registered the highest increase from 89,212 in 2005 to 133,985 in the year under review (a 23.82% increase) and was followed by Mini- buses with a 16.10% increase. The least number of vehicles type-wise were Buses and Pick-Ups with decreases of 1.27% and 0.12%, respectively.
2.1.2 Gross premium income: Life
Table 10: Life premium by class (million Ushs.) Class 2002 2003 2004 2005 2006 Life Individual. 77 57 579 237 327 Life Group 503 2,546 2,075 2,689 4,223 DAP 3,104 2,331 2,316 2,252 1,251 Total 3,684 4,934 4,970 5,178 5,801
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Table 11: Percentage change by class -Life Class 2002-2003 2003-2004 2004-2005 2005-2006 Life Individual (25.97) 915.79 (59.07) 37.97 Life Group 406.16 (18.50) 29.59 57.05 DAP (24.90) (0.64) (2.81) (44.45) Industry change 33.93 0.73 4.19 12.03
Table 12: Percentage share by class -Life Class 2002 2003 2004 2005 2006 Life Individual 2.09 1.16 11.65 4.58 5.64 Life Group 13.65 51.60 41.75 51.93 72.80 DAP 84.23 47.24 46.60 43.49 21.57 Total 100 100 100 100 100
Chart 2: Percentage share by class: Life - 2006
Life Group 72%
DAP 22% Life Individual. 6%
Among the Life business classes, Table 11 shows that the Life Individual class recovered from a 59.07% drop it had registered in 2005 to a big growth of 37.97% in 2006. The Life Group class continued to increase and in the year under review, it registered growth of 57.05% (the highest among the three Life business classes). As was reported in our earlier similar Reports, Government’s liberalization policy has affected the growth of Life insurance business in that some new owners of the privatized businesses have abandoned the existing Staff Benefit Schemes and subscribed to the Statutory NSSF. Another reason for the poor Life business
Uganda Insurance Commission 14 2006 Annual Insurance Market Report performance has been NSSF’s adoption of stricter enforcement of their Scheme which led some employers to abandon private Life Group and DAP Schemes and remain with the Statutory one. Additionally, Makerere University (MUK)’s discontinuation of its approximately Ushs. 2 billion annual contribution to National Insurance Corporation Ltd’s DAP scheme exacerbated the poor performance of the Life insurance business (Graph 2, refers). The situation has been further worsened by the Fund Managers who have, increasingly, taken over the management of pension funds.
Otherwise, and as Table 12 and Chart 2 illustrate, Life Group was the biggest contributor to the Life insurance premium followed by DAP.
General comments From what we have seen in the above sections, a gross premium of shillings 102,295 million was written during the year under review. Of this, 94% was on account of Non-Life business, and the rest for Life business. The over-all growth rate was slightly higher than that registered in 2005 (section 2.1, refers).
There is, however, potential for insurance growth as challenges like product innovation; sensitisation of the public about the value and role of insurance; attainment of capacity by insurers to write optimal business and, in particular, Marine and Aviation business; etc are addressed. Further increase in incomes and insurable interests of prospective consumers will also lead to further development of the industry. Other factors will include importation and adaptation of products e.g. micro- insurance and microfinance products, increasing competition and improved service delivery, etc.
In the year under review, the average gross premium written by insurers was Ushs. 5,384 million. This time round, six (2005: 5) companies exceeded this average. These big players controlled 69.14% (2005: 67.16%) of the industry. Ten (10) of the remaining thirteen (13) companies managed to write over Ushs. 1,000 million. The details are contained in the table on page 73.
Uganda Insurance Commission 15 2006 Annual Insurance Market Report
Most tables and charts in this report are based on data of only five (5) years i.e. 2002 to 2006. However, Graphs 1 and 2 below are based on eleven (11) years’ data i.e. from the time the Commission was established and give the picture/trend of the premiums over the period.
Graph 1: Trend of Non-Life gross premium by class (1996 – 2006)
45,000
40,000
35,000
30,000
25,000
20,000
15,000
Premium (million Premium Ushs) 10,000
5,000
0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Years
Fire Marine Motor Misc. Accident
Other than Miscellaneous Accident which is composed of many individual classes, Graph 1 shows that the Motor class registered a tremendous performance over the years starting with 2001. The Fire class has, also, followed a relatively similar trend though it got a setback between 2004 and 2005. Insurers have to put in enormous effort to liven up the Marine and Aviation class whose comparative performance is poor.
Uganda Insurance Commission 16 2006 Annual Insurance Market Report
Graph 2: Trend of Life gross premium by class (1996 – 2006)
4,500
4,000
3,500
3,000
2,500
2,000
1,500
Premium (million Premium Ushs) 1,000
500
0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Years
Life Individual Life Group DAP
As we noted in section 2.1.2, the trend of the DAP class is not promising. The impact of Makerere University’s withdrawal of its contribution, together with other factors in the said section will continue to be felt by the insurance industry in the foreseeable future. As Graph 2 above shows, the performance of this class continued to decline even during the year under review. Much as the performance of Life Group has in recent years been improving, its trend before 2002 was in a fluctuating form. Lastly, and like the Marine class in Graph 1, the performance of the Life Individual class has, virtually, been unvaried over the years.
2.1.3 New products on the market
As we reported in the 2005 Report, the practice of coming up with new products and the re-branding of old products is catching on fast. This is in response to the Commission’s call to insurers to revive Life assurance business and to overhaul, modernise and come up with products which satisfy consumers’ needs better due to the ever-changing environment, tastes and preferences, incomes, technology, etc. In the year under review, this effort has continued to yield fruits because, in addition to the new products which have been publicly launched, many existing ones have been re-branded and brought to the Commission for approval. Such products included: The
Uganda Insurance Commission 17 2006 Annual Insurance Market Report
Ladies Insurance Protection Scheme; The Business Travel insurance; The Motorcycle (Boda-Boda) Accident Insurance Policy; Dividend Plus Plan; Estate Comprehensive Policy; Group Mortgage Protection plan; Micro-finance care policy; Morecare insurance policy; Personal Pension & Annuity-plus plan; etc.
2.1.4 Number of insurance policies
Table 13: Number of new policies issued and renewals (2005 & 2006)
2005 2006 %-age change Non-Life New Renewals New Renewals New Renewals Fire 1,956 3,409 2,037 3,555 4.14 4.28 Marine/Av. 4,643 175 3,529 208 (23.99) 18.86 Motor 117,696 42,004 117,332 30,586 (0.31) (27.18) Misc. Accidents 7,688 5,197 11,742 7,462 52.73 43.58 Total 131,983 50,784 134,640 41,811 2.01 (17.67) Life New Renewals New Renewals New Renewals Life Indiv. 184 1,603 374 83 103.26 (94.82) Life Group 20 40 49 23 145.00 (42.50) DAP 6 35 12 15 100.00 (57.14) Total 210 1,678 435 121 107.14 (92.79)
Unlike for the year 2005, when there was positive growth in the number of new policies/business written for all the Non-Life classes, the year 2006 registered negative growth in Marine/Aviation and Motor classes. The Miscellaneous Accident class registered the highest growth of 52.73%. In this category of business, the Marine/Aviation class was the most hit, with its new policies dropping from 4,643 in 2005 to 3,529 in 2006. On the whole, the total number of new Non-Life polices increased from 131,983 to 134,640 in 2006. The total number of renewal policies fell by 17.67% from 50,784 to 41,811 in 2006.
On the Life side, the Life Group class registered the highest rise in new policies i.e. 145% from 20 to 49 in 2006. Table 13 further shows that there were fewer renewals for the three Life classes.
Uganda Insurance Commission 18 2006 Annual Insurance Market Report
2.1.5 Estimated number of individuals benefiting from insurance.
From the information on pages 54 to 58, we have estimated that for the year 2006, a total of 403,025 individuals were covered by the various Non-Life insurance policies. The corresponding number for Life assurance business is 1,181,660. The figures would have been slightly higher had company not failed to avail us the necessary statistics on this issue.
From the foregoing, a total of 1,584,685, i.e. 5.8% of the country’s total population were covered by various insurance policies in 2006. This figure is not so different from the 6% that was contained in the results of a national survey on access to financial services in Uganda that was conducted by the FinScope Uganda, between October and December 2006.
2.2 Reinsurance
In the year under review, efforts to operationalise UGANDA REINSURANCE COMPANY LTD (UGANDA RE) continued. Such efforts included the following: the request and lobbying for specific percentage cessions to Uganda Re to be incorporated in the proposed amendments to section 64 of the Insurance Act;
mobilizing support from African regional and continental reinsurance companies and brokers to help Uganda Re design a suitable retrocession programme besides helping it procure inward reinsurance business.
Nonetheless, Uganda Re continued to be un-operational by the end of the year under review and the insurers continued to buy all reinsurance protection from abroad. The position of the premiums ceded to foreign reinsurers in the past five years is as per Table 14.
Table 14: Reinsurance premium ceded (2002 - 2006) by class of business (million Ushs.) Non-Life Life Year Fire Marine/ Motor Misc. Total Life Group DAP Total Aviation Accident Indv. Life 2002 6,442 3,012 3,023 7,699 20,176 21 211 412 644 2003 8,378 3,531 2,130 10,698 24,737 30 1,032 - 1,062 2004 11,715 4,926 3,929 13,252 33,822 50 1263 - 1,313 2005 10,666 4,856 4,449 16,937 36,908 43 687 - 730 2006 12,112 5,063 3,809 18,703 39,688 42 1,083 - 1,125
Uganda Insurance Commission 19 2006 Annual Insurance Market Report
As indicated in the above table, there was a slight increase in the total Non-Life and Life reinsurance premiums ceded from Ushs. 37,638 million in 2005, to Ushs. 40,813 million in the year under review, an increase of 8.43%. The individual Non-Life and Life reinsurance premiums ceded registered percentage changes of 7.53% and 54.11%), respectively.
2.2.1 Retention ratio
Out of the total combined gross premium of Ushs. 102,295 million, Ushs. 40,813 million was ceded out as on account of reinsurance premium as detailed in Table 14. This translates into an industry reinsurance ratio of 39.90% and a retention ratio of 60.10%.
Table 15: Retention ratios -Non-Life Class 2002 2003 2004 2005 2006 Fire 26.51 15.06 16.20 22.52 27.67 Marine/Aviation 33.68 34.21 28.33 32.09 31.86 Motor 81.94 89.27 83.61 84.93 87.67 Misc. Accident 61.25 56.83 56.48 50.98 54.86 Industry average 59.57 58.68 55.37 56.58 58.87
Table 16: Retention ratios – Life Class 2002 2003 2004 2005 2006 Life Individual 72.51 47.17 91.38 81.97 87.26 Life Group 58.06 59.46 78.52 74.46 74.35 DAP 86.72 - - - - Industry average 82.51 78.47 71.98 85.91 80.61
Table 15, indicates that among the Non-Life insurance classes, the Motor class registered the highest level of retention ratio. This is possibly due to the fact that most policies are of the statutory Motor Third Party risks (bodily injury) whose total aggregate liability is only Ushs. 10 million per accident and a maximum of Ushs. 1 million per passenger, which is relatively low and is thus retained by most companies. On the other hand, insurers cede out most and retain very little of the Marine and Fire risks due to their relatively higher exposure limits. Now that all the insurance players
Uganda Insurance Commission 20 2006 Annual Insurance Market Report have raised their paid-up capital to the Statutory level (section 1.6 refers), it is anticipated that the retention levels will rise.
2.3 Net earned premiums
Table 17: Non-Life net earned premium (Ushs.’000) Class 2004 2005 2006 Fire 2,233,431 2,727,491 3,809,492 Marine/Aviation 1,863,813 2,096,777 2,330,636 Motor 18,793,122 22,498,624 26,304,074 Misc. Accident 15,405,774 17,838,504 20,556,234 Total 38,296,140 45,161,396 53,000,436
Table 18: Life net earned premium (Ushs.’000)
Class 2004 2005 2006 Life Individual 523,107 194,481 282,833 Life Group 420,121 2,002,273 3,131,696 DAP 2,410,314 2,251,512 1,251,293 Total 3,353,542 4,448,266 4,665,822
Out of the total premium of Ushs. 16,746 million and Ushs. 7,431 million that was written for Fire and Marine classes, Ushs. 3,809 million and Ushs. 2,331, respectively, were actually earned by the insurance companies (Tables 7, 10, 17 & 18 refer). The corresponding figures for Motor and Miscellaneous classes were Ushs. 30,889 million, Ushs. 41,429 million against Ushs. 26,304 million and Ushs. 20,556 million, respectively.
On the Life side, out of the total premium of Ushs. 327 million and Ushs. 4,223 million that were written for Life Individual and Life Group classes, Table 18 reveals that Ushs. 283 million and Ushs. 3,132 million, respectively, were actually earned by the insurance companies.
Uganda Insurance Commission 21 2006 Annual Insurance Market Report
2.4 Claims experience
Table 19: Non-Life net incurred claims (Ushs.’000) Class 2004 2005 2006 Fire 904,235 954,235 1,302,855 Marine/Aviation 526,265 674,128 516,306 Motor 7,029,604 8,540,632 10,542,229 Misc. Accident 3,197,541 555,936 6,202,338 Total 11,657,645 15,725,931 18,569,728
Table 20: Life net incurred claims (Ushs.’000)
Class 2004 2005 2006 Life Individual 74,683 6,312 28,382 Life Group 181,193 1,225,496 278,748 DAP 1,454,878 1,684,877 1,613,880 Total 1,710,754 2,916,685 1,921,010
The 2006 percentage increase in the total Non-Life net incurred claims was the same as that registered in 2005 i.e. 34%. The increases in the net incurred claims levels from the 2005 position was due to factors like; increase in some insurers’ business especially medical insurance whose claims, unlike other insurance classes like Fire, require immediate compensation; increase in the volume of Motor business written yet it is more prone to accidents; some companies promptly settling genuine claims; and some of them settling some of the claims on an ex-gratia basis so as to maintain good business relationships with their clients; etc.
The bar charts below which have been generated from Tables 17 & 19 and also 18 & 20, respectively, show the comparison between the net earned premiums and net claims incurred for Non-Life and Life business, during the period under review.
Uganda Insurance Commission 22 2006 Annual Insurance Market Report
Chart 3: Non-Life earned premiums Vs. Net claims incurred – 2006.
30,000 26,304
25,000 20,556
20,000
15,000 10,542
million (Ushs) million 10,000 6,202
3,809 5,000 2,331 1,303 516
0 Fire Marine/Aviation Motor Misc. Accident Categories
Net earned premium Net Incurred claims
In Chart 3 above, it is evident that the Motor class was the worst hit in terms of claims. This is because 37.96% of the premiums earned in this class was spent/incurred in settlement of corresponding claims. This is explained by the fact that motor vehicles are ever on the road and their corresponding exposure to risk is definitely high.
Chart 4: Life earned premiums Vs. Net claims incurred – 2006.
3,500 3,132
3,000
2,500
2,000 1,614
1,251
1,500 million (Ushs) million 1,000
283 279 500 28
0 Life Individual Life Group DAP Categories
Net earned premium Net Incurred claims
Uganda Insurance Commission 23 2006 Annual Insurance Market Report
2.4.1 Loss ratios The loss ratios in the following two tables are computed as net incurred claims being expressed as a percentage of net earned premiums, and the details are on page 43.
Table 21: Non-Life loss ratios Class 2004 2005 2006 Fire 41.49 34.99 34.20 Marine/Aviation 28.24 32.15 22.15 Motor 34.41 37.95 40.08 Misc. Accident 20.76 31.16 30.20 Industry average 30.44 34.82 35.04
Non-Life business generated a net earned premium of Ushs. 45,161 million against net incurred claims of Ushs.15,726 million during the year under review, giving rise to an industry loss ratio of 35.04% (2005: 34.82%), Table 21 refers.
On a class-wise basis, the Motor class was the worst performer though all classes had loss ratios below 41%. On individual company basis, ten out of the nineteen companies had loss ratios above the industry ratio of 35.04% and that of the rest was below the industry figure, page 43 refers.
Table 22: Life loss ratios Class 2004 2005 2006 Life Individual 14.28 3.25 10.03 Life Group 43.13 61.21 8.90 DAP 60.36 74.83 128.90 Industry average 51.01 65.57 41.17
2.4.2 Big claims registered
The information on page 75 shows that a total of Ushs. 7,183 (2005: 20,174) million was in respect of big claims i.e. claims of Ushs. 20 million and above that were registered by the insurance players. One implication of the big difference in the two figures for the two years is that the latter year was less catastrophic than the former.
Uganda Insurance Commission 24 2006 Annual Insurance Market Report
2.5 Expense ratio
The universally ideal level of expense ratio for an insurer is for the ratio to be below the industry average as this will be an indication of above average operational efficiency. With this yardstick in mind, and as was the case in the year 2005, the information on page 49 indicates that most insurance companies had their Non-Life expense ratios above the industry average of 38.75%. Much as this industry figure was far below that for 2005 i.e. 71.64%, it is still clear that most companies were below average operational efficiency. The high expenses are attributable to factors such as some insurers’ re-organisation after changes in management and were in the process of re-establishing themelves; one of the companies carrying out general advertising and publicity in preparation for Silver Jubilee celebration and change in its corporate image, logo, website, etc; another big insurer’s engaging in business/sales promotion following the change in its corporate image; and so many others. High expenses deplete company funds, hence affecting the ability to settle claims.
2.6 Return on equity
This ratio being one of the primary measures used in the insurance industry enables the investors to ascertain if the business is making money for them and to compare between alternative businesses. In the year under review, and as per the details in the table on page 51, it is evident that most companies used their shareholders’ capital less efficiently than in 2005, since the higher the ratio attained, the better the return.
2.7 Solvency margin
Section 44 (1) of the Insurance Act provides that the solvency margin of an insurer should be: (a) in the case of Non-Life insurance business or reinsurance, the admitted assets of the insurer should exceed its admitted liabilities by a minimum of 15% of the premium income, net of reinsurance cessions; and
(b) in the case of Life insurance business, an insurer’s liabilities should not exceed the amount of the Life insurance fund of the insurer.
Uganda Insurance Commission 25 2006 Annual Insurance Market Report
The information on page 72 shows that all insurance companies were solvent, unlike during the year 2005 when two were insolvent.
2.7.1 Solvency coverage This ratio is also shown by the table on page 72, and since the required solvency margin is a legal obligation, a ratio less than 100% would indicate a breach. As we have noted in section 2.7 above, all companies scored far above the minimum 100% average.
2.8 Insurance market penetration
Table 23: Market penetration
Year Life + Non-Life premiums GDP at factor cost at current Premium as a % (million Ushs.) prices (million Ushs.) of GDP 2002 53,598 10,847,788 0.49 2003 64,798 12,756,541 0.51 2004 80,755 14,081,557 0.57 2005 90,179 16,268,320 0.55 2006 102,295 18,608,430 0.55
The insurance sector’s contribution to GDP has continued to lie below 1% as Table 23 shows. The major hindrances that have persistently affected the development, and stifled the growth of the insurance industry that were even cited in our earlier similar reports are repeated below, while others are contained in observations/recommendations in chapter 4. The persistent hindrances include: (i) the general low level of insurance awareness amongst both the insuring and the would-be insuring public. (ii) the general poverty and low incomes of the majority of the prospective consumers, giving rise to inability to afford insurance due to non-possession of valuable insurable property; (iii) the intangibility of insurance which makes its value and role difficult to perceive, given the low education level of the masses; (iv) the inadequacy of products which would be ideal for the rural prospective consumers who form the bulk of the population;
Uganda Insurance Commission 26 2006 Annual Insurance Market Report
2.8.1 Continental perspective
Out of Africa’s 2006 total premium volume of US$ 49,667 million, South Africa, which is Africa’s insurance giant, accounted for 82.00% (2005: 82.91%). On a global perspective, its ranking, however, slightly dropped from the 16th in 2005 to the 17th position. The 82% lion’s share left the other 55 or so African countries with a contribution of 18% (2005: 17.09%). Uganda accounted for only 0.11% of the total African gross premium for 2006.
Table 24 shows further that unlike countries such as South Africa, many other jurisdictions, Uganda inclusive, perform poorly in the long term insurance business in contrast to the general type of business. Greater development of Life assurance business in Uganda continues to be inhibited by factors like those given in section 2.8 above, which are responsible for the low contribution of insurance to GDP.
Though at different levels of economic, social, political, etc development, if we were to compare Uganda with South Africa, the former would have to increase/multiply its written premium efforts (in Life business) by over 11,035 times. The corresponding Non-Life insurance business figure would be 147 times.
Table 24: 2006 premiums & GDP of selected African countries (million US $).
Life Non-Life Life & Non/Life GDP Penetration Country Premium Premium Premium rate 1 South Africa 33,106 7,624 40,731 255,000 15.97 2 Morocco 469 1,206 1,675 58,000 2.89 3 Egypt 356 487 843 107,000 0.79 4 Nigeria 112 605 716 112,000 0.64 5 Angola 63 624 687 36,000 1.91 6 Algeria 39 586 625 119,000 0.53 7 Tunisia 54 550 604 31,000 1.95 8 Kenya 186 406 592 24,000 2.47 9 Namibia 358 151 509 6,000 8.48 10 Uganda 3 52 55 10,160 0.54 Source: Swiss Re, Sigma Report No. 4/2007 Note: Uganda has been included merely for comparison purposes.
Uganda Insurance Commission 27 2006 Annual Insurance Market Report
2.9 Employment in the insurance industry
Table 25: Employment in the insurance industry Category of employment 2002 2003 2004 2005 2006 Insurance companies 555 487 487 553 563 Insurance brokers 190 199 189 183 150 Insurance agents 248 302 310 351 436 Commission staff 14 15 15 21 21 Total 1,007 1,003 1,001 1,108 1,127
As per the information in Table 25, we can see that there was a mere 1.7% increase in the number of employees in the insurance industry from 2005 to 2006. A critical analysis shows that the number of employees in the brokerage sector dropped considerably. This is due to the fact that some four (4) brokerage firms did not apply to renew their licences for the year 2007. Otherwise, there were increases for insurance companies and insurance agents.
2.10 Insurance brokers’ performance
Table 26 (a): Total premium generated by brokers (‘000) 2002 2003 2004 2005 2006 Total premium generated 22,501,804 27,644,434 35,279,444 41,228,886 45,578,269 Brokers’ contribution to 41.98 42.66 43.61 45.56 45.56 total industry premium (%)
Albeit at a slow pace, the contribution of insurance brokers to the total industry premium has been increasing over the years. On an individual basis, the details on page 74 show that out of the twenty-one licensed insurance brokers in the year under review that submitted pertinent data, eight (8) of them generated business over one billion shillings, each. These eight accounted for 87.61% (2005: 87.56%) of the total volume of business through brokers. The leader amongst these eight accounted for a slightly lower 42.37% than the 2005 figure of 46.82% of the total premium generated. The market average was Ushs. 2,170 million and only three firms surpassed that figure.
Uganda Insurance Commission 28 2006 Annual Insurance Market Report
From the table on page 74, we can see that of the Ushs. 45.5 billion which was the total production for brokers the year under review, Ushs. 9,116 billion was still uncollected as at 31st December 2006. Delayed remittance of premiums to insurers is a major problem. However, the proposed amendments to the Insurance Act referred to in section 1.5 of this report, include one for ensuring prompt payment of premiums to insurers by brokers.
Table 26 (b): Amount of commission earned by brokers Year Brokerage income %-change 1998 1,980,783 - 1999 2,607,545 31.64 2000 2,855,761 9.52 2001 3,481,601 21.91 2002 4,264,022 22.47 2003 4,780,416 12.11 2004 5,895,161 23.32 2005 6,419,529 8.89 2006 7,701,626 19.97
From Table 26 (a), we can observe that the level of total premium generated through brokers increases every year. By implication, the brokers are becoming more aggressive in looking for insurance business. And in Table 29 (b), their brokerage income (commission) has correspondingly increased.
Uganda Insurance Commission 29 2006 Annual Insurance Market Report
3.0 INSURERS’ CONSOLIDATED BALANCE SHEETS - 2006
3.1 Non-Life business
ASSETS 2006 2005 2004 (Ushs. ‘000) (Ushs. ‘000) (Ushs. ‘000) Property & equipment 24,265,930 23,075,773 28,006,832 Short-term investments 2,435,403 41,391,749 12,506,435 Security deposits 3,993,553 3,196,676 2,919,054 Deferred tax 506,882 463,919 614,203 Other assets 3,869,306 2,255,559 18,774,155 Tax recoverable deposits 780,783 470,410 426,141 Accounts receivable 25,610,092 21,074,312 19,595,085 Other debtors 16,038,433 3,391,824 1,789,008 Group balances 10,863,138 17,423,664 73,165 Other receivables 941,053 14,188,485 1,484,593 Long-term Investments 62,940,211 19,517,486 28,498,146 Cash and Cash equivalents 6,786,472 7,493,595 7,754,010 TOTAL ASSETS 159,031,256 153,943,452 122,440,827 LESS NON-CURRENT LIABILITIES 50,794,325 51,744,437 37,460,728 LESS CURRENT LIABILITIES 21,801,816 26,916,209 21,338,121 NET ASSETS 86,435,115 75,282,806 63,641,978
SHAREHOLDERS FUNDS Paid up share capital 31,608,396 35,163,971 25,808,252 Share premium 6,511,108 - - Retained earnings 13,847,156 9,029,298 13,551,164 Revaluation reserves 15,245,188 19,636,685 866,820 Contingency reserves 11,561,011 9,374,900 7,596,284 Capital reserves 1,516,482 1,166,723 1,420,395 Non-distributable reserves 2,018,839 911,229 14,399,063 Proposed dividends 4,126,935 TOTAL SHAREHOLDERS FUNDS 86,435,115 75,282,806 63,641,978
In general, the Non-Life net assets of the insurance companies registered an increase of 14.81% in the year under review from Ushs. 75,283 million in 2005. This was
Uganda Insurance Commission 30 2006 Annual Insurance Market Report slightly lower than the 18.29% increase that was registered in 2005, despite one company having failed to submit its accounts promptly at the time.
Like has been the case over the past three years, the major contributors to the asset mix during the year under review were long-term investments, property and equipment and accounts receivable with 39.58% (2005: 12.68%), 15.26% (2005: 14.99%) and 16.10% (2005: 13.69%), respectively. Another remarkable development is the tendency for people to move away from engaging in short-term to long-term investments as the table shows.
The Commission has, over the past four years, urged the insurers to spread their asset mix well into those investments, which are easily convertible to liquid funds to facilitate settlement of claims and other liabilities. These include short-term investments, security deposits, cash and cash equivalents, etc.
3.1.1 Current asset ratio - Non-Life From the information on page 70, it is clear that in the year under review, the Non- Life business current ratio of seventeen insurance companies was above 1. By implication, these companies are able to quickly settle short-term liabilities, insurance claims inclusive.
Uganda Insurance Commission 31 2006 Annual Insurance Market Report
3.2 Life business ASSETS 2006 2005 2004 (Ushs. ‘000) (Ushs. ‘000) (Ushs. ‘000) Property & equipment 256,844 9,501,356 9,416,290 Short-term investments 15,953,972 17,511,503 14,055,955 Security deposits - - - Deferred tax 2,265 259 514 Other assets 56,410 - 128,818 Tax recoverable deposits 5,845 723 - Accounts receivable 780,645 182,766 423,176 Other debtors 1,908,353 1,262,149 637,475 Group balances - 17,366 553 Other receivables 381,677 84,834 144,428 Long-term Investments 21,160,973 6,509,181 2,712,628 Cash and Cash equivalents 1,333,499 748,252 1,916,736 TOTAL ASSETS 41,840,483 35,818,389 29,436,573 LESS NON-CURRENT LIABILITIES 9,627,859 28,782,528 23,318,319 LESS CURRENT LIABILITIES 29,695,945 4,595,678 3,151,562 NET ASSETS 2,516,679 2,440,183 2,966,692
SHAREHOLDERS FUNDS Paid up share capital 2,440,183 2,440,183 2,660,336 Share premium - - Retained earnings - 306,356 Revaluation reserves - Contingency reserves 76,496 - Capital reserves - Non-distributable reserves - TOTAL SHAREHOLDERS FUNDS 2,516,679 2,440,183 2,966,692
The Life business net assets of insurance companies increased by 3.13% from Ushs.2,440 million in 2005. The corresponding figures for 2005 were (17.75%) and Ushs. 2,967 million, respectively. Insurers had 50.58% and 38.13% of their funds in long-term investments and short-term investments, respectively. The corresponding figures for 2005 were 18.17% and 48.89%. Additionally, the year under review
Uganda Insurance Commission 32 2006 Annual Insurance Market Report registered a very small contribution (0.61%) of property and equipment to the total assets mix compared to the 2005 corresponding figure of 26.53%.
3.2.1 Current asset ratio - Life From the information on page 71, it is noted that unlike for Non-Life business, the current asset ratio of 4 Life insurance companies was below 1. The Commission took timely action to ensure that these companies rectify the situation to ensure that they are in position to comfortably settle their short-term liabilities.
Uganda Insurance Commission 33 2006 Annual Insurance Market Report
4.0 GENERAL OBSERVATIONS/RECOMMENDATIONS After observing the performance of the insurance industry over time, the observations/recommendations below, some of which have been highlighted in earlier reports, are worthy mentioning or repeating.
(a) There is need for the insurance players to intensify the training and retraining of their staff and agents to make them more skilled, competent and professional. This will help in building consumer confidence in the insurance industry.
(b) The insurance players should also increasingly use IT so as to derive advantages such as: establishment of reliable data bases; development of a strong and competitive edge in the face of the ever-increasing competition and globalisation; improvement on their customer care; facilitating the Commission to realize its goal of frequent computerized monitoring of the players’ operations; etc.
(c) All insurance companies are encouraged to venture into the business of microinsurance. On top of benefiting the low-income citizens, this type of business can, in the long run, be very profitable as is evidenced from the many countries where it is flourishing.
(d) There is need to expedite the process of operationalising a Ugandan reinsurance company to cut down on the level of capital outflow through reinsurance. It will be capable of even rendering services within the East African region and beyond.
(e) Much as it has already been embarked on, insurers ought to continuously focus on product innovation in line with market needs and improve on their marketing strategies.
(f) More and more players should venture into those insurance areas that have/are not fully exploited e.g. health, animal/farming, education, etc.
(g) In section 2.5 we see that most insurance players’ expense ratios were above the industry average, a sign of below average operational efficiency. Thus, it is imperative that insurance companies continue reducing Management expenses as well as business acquisition costs so as to facilitate easy settlement of liabilities and enhance profitability. This will, in turn, boost consumer confidence in insurance services.
(h) There is need for increased self-regulation and development of the culture of voluntary compliance with regulatory and prudential requirements. Additionally, the players need to inculcate amongst themselves professional ethics and norms through their professional Associations’ Codes of Conduct.
Uganda Insurance Commission 34 2006 Annual Insurance Market Report
(i) In light of the rather still fragmented market, despite the enhanced minimum statutory paid-up capital levels that were promulgated in August 2002 and became mandatory in August 2006, insurance companies should consider and be encouraged to amalgamate. This will enable them to reap the benefits that accrue from pooling financial, technical and human resources, besides stream-lining the insurance market.
(j) Even while the Commission continues to refine investment guidelines and have them enshrined in the law to enhance its ability to enforce them, insurers should endeavour to invest their assets prudently so as to ensure that they are available to meet claims when needed.
(k) As the Commission strives to have in Uganda a well-regulated insurance industry which, inter alia, ensures protection to consumers and contributes effectively to national economic stability and development, the insurance players should also collaborate with the Commission to continuously sensitise the public and other stakeholders on the role and value of insurance, insurance products, resolution of insurance related complaints, claims handling procedures, risk management and loss control, etc.
(l) Both the insurers and brokers should adopt a prudent credit policy to drastically cut down on outstanding premiums.
The above, if adopted, would enhance the development of the insurance industry and its contribution to the economic and social welfare of Uganda.
Uganda Insurance Commission 35 2006 Annual Insurance Market Report
5.0 SOURCES OF INFORMATION, DEFINITION OF SOME INSURANCE TERMS, AND REFERENCES
5.1 Sources of information The main sources of information in this report have, as usual, included statutory returns and audited accounts as well as other statistical information sources (refer to section 5.3).
5.2 Definition of some insurance terms The following are some of the terms in common usage in the insurance industry. Some of them have been used in this report and where they have been used, they have the meaning attached to them hereunder.
Actuary: means a person who is a member, Associate or Fellow of a professional institute, faculty, society or association of actuaries, recognised as such by the Commission and who is authorised by that institute, faculty, society or association to certify actuarial valuations of Life insurance business.
Claim: a demand by the insured for an indemnity or benefit under the policy.
Claims ratio: this is the claims (losses) incurred as a percentage of the premium earned.
Claims settling: means a person licensed under the Insurance Act to undertake agent the business of settling or negotiating settlement of insurance claims under policies issued by insurers whether within or outside Uganda.
Cover: the insurance provided by the insurer for the insured or reinsurer for the reinsured.
Earned premium: the portion of the gross premium relating to the period of insurance that has already run.
Endorsement: is a clause appended or affixed to the policy embodying some alteration to the policy terms. Endorsements may be added at the inception or afterwards to record a change agreed by the parties.
Expense ratio: the fraction arrived at by dividing the amount of premiums into the amount of expenses incurred in connection with a particular class of business.
Uganda Insurance Commission 36 2006 Annual Insurance Market Report
Facultative the reinsurance of an individual risk on terms and conditions reinsurance: agreed with the reinsurer specifically for that risk.
Foreign company: this means a company not being a local company.
Gross premium is the total premium before deducting outgoing reinsurance income: premium or other deductions.
Incurred claims/ the total of paid and outstanding claims arising in a given losses: period.
Insurance: a mechanism whereby the risk of financial loss is transferred from an individual, company, organization or other entity to an insurance company.
Insurance Act: the Insurance Act, (Cap 213) Laws of Uganda, 2000.
Insurance agent: means a person appointed and authorized by an insurer to solicit applications for insurance or negotiate for insurance coverage on behalf of the insurer and to perform other functions that may be assigned to him by the insurer, and who in consideration for his or her services receives commission from the insurer.
Insurance broker: an insurance intermediary who advises his clients and arranges their insurances. Although he acts as the agent of his client, he is normally remunerated by a commission (brokerage) from the insurer. An insurance broker is a full-time specialist with professional skills in handling insurance business.
Insurance surveyor: means a person who engages in surveying risks and in advising on the rate and terms and conditions of the premiums.
Insured: the party who has acquired the insurance and will be entitled to enforce a claim under the policy as a party to the contract.
Intermediary: a person who invites other persons to make offers or proposals or to take other steps with a view to entering into a contract of insurance with an insurer, but does not include a person who merely publishes an invitation to the order of another person.
Licence: means a licence issued under the Insurance Act and prescribed in the Insurance Regulations, 2002.
Local company: means a company registered or incorporated under the Companies Act in which the majority of shares and actual controlling interest are held by citizens of Uganda.
Uganda Insurance Commission 37 2006 Annual Insurance Market Report
Loss adjuster: means a person registered under the Insurance Act to undertake professional loss adjusting business for or on behalf of an insurer, an insured or any other person.
Loss assessor: means a person licensed under the Insurance Act to undertake the business of assessing, investigating; except that the loss assessor may settle losses on behalf of the insurer or the insured.
Net premium this is usually taken as gross premium income less premium income: returns and rebates, reinsurance premiums, and often production costs, brokers’/agents’ commission, etc.
Policy: this is a written document evidencing the contract between the insurer and the insured.
Policyholder: the person in whose name the policy is issued.
Premium: means the consideration paid/payable by the insured in return for the insurance cover provided by the insurer for entering into an insurance contract.
Reinsurance: the insuring again by an insurer of the whole or part of a risk that he has already insured with another insurer called reinsurer.
Reinsurance the amount paid by an insurer in consideration of reinsurance. premium:
Retention: the proportion of the amount of the risk that an insurer retains on his own account.
Retention ratio: the ratio of net premiums to gross premiums.
Risk manager: means a person who does the business with regard to minimising losses arising through unforeseen events and of minimising the cost of such losses by arranging physical or financial measures through insurance or any other means.
Third Party: a person claiming against an insured.
a. the first party is the person/company insured by a particular insurance company; b. the second party is the specific insurance company; c. the third party refers to anyone else who is involved in a loss event, which may or may not result in a claim. For example, in motor insurance a third party may be another vehicle owner, property owner, or persons such as passengers or pedestrians.
Uganda Insurance Commission 38 2006 Annual Insurance Market Report
5.3 References
(i) Commission Quarterly Reports. (ii) Dictionary of Insurance by C. Bennett. (iii) IAIS Training Manual. (iv) Swiss Re, Sigma Report No. 4/2007 (v) The Insurance Act, (Cap213) Laws of Uganda, 2000. (vi) The Insurance Regulations, 2002. (vii) Uganda Bureau of Statistics: 2004, 2005, 2006 & 2007 Statistical Abstracts.
Uganda Insurance Commission 39 2006 Annual Insurance Market Report
STATISTICS TABLES
Uganda Insurance Commission 40 2006 Annual Insurance Market Report Gross premium – 2006
(Amount Ushs. ' 000) Non-Life Life Insurance Company Fire Marine/Av Motor Misc.Acc Total Life Indiv. Life DAP Total Group 1 AIG Uganda 3,007,864 1,259,954 6,194,940 10,302,216 20,764,974 2 Jubilee Insurance 3,351,970 1,684,940 5,191,954 4,110,932 14,339,796 189,591 211,620 401,211 3 United Assurance 3,498,790 996,310 3,211,661 4,557,181 12,263,942 930,316 10,529 940,845 4 National Insurance 1,237,595 471,480 2,773,208 2,381,589 6,863,872 70,627 809,179 371,560 1,251,366 5 Goldstar Insurance 1,440,418 594,121 1,756,899 4,216,434 8,007,872 6 E.A.Underwriters 930,897 384,857 1,757,763 1,318,553 4,392,070 - 1,515,414 31,838 1,547,252 7 Excel Insurance Co. 427,483 27,477 2,280,145 1,946,576 4,681,681 8 Lion Assurance Co. Ltd. 474,267 67,164 802,279 2,570,191 3,913,901 9 Insurance Co. of E.A 561,687 127,601 218,005 1,235,410 2,142,703 256,433 778,071 625,746 1,660,250 10 Statewide Insurance 348,935 369,614 1,188,193 1,240,679 3,147,421 11 First Insurance 268,593 51,040 1,663,310 1,154,606 3,137,549 12 Microcare Insurance - - - 2,943,135 2,943,135 13 Phoenix of (U) Assurance 450,455 681,122 923,521 744,514 2,799,612 14 TransAfrica Assurance 332,100 461,625 606,992 712,241 2,112,958 15 Leads Insurance Ltd. 177,468 140,889 520,762 978,793 1,817,912 16 E.A.General Insurance 163,004 52,864 927,300 380,705 1,523,873 17 NICO Insurance (U) Ltd. 63,566 52,021 295,907 339,774 751,268 18 Paramount Insurance 8,925 3,810 246,828 230,377 489,940 19 Rio Insurance 2,020 3,776 329,342 65,056 400,194 Total 16,746,037 7,430,665 30,889,009 41,428,962 96,494,673 327,060 4,222,571 1,251,293 5,800,924
Uganda Insurance Commission 41 2006 Annual Insurance Market Report
Reinsurance premium ceded-2006 (Amount Ushs. ' 000) Non-Life Life Insurance Company Fire Marine/Av Motor Misc.Acc Total Life Indiv. Life Group DAP Total 1 AIG Uganda 2,374,811 1,227,075 722,728 5,019,630 9,344,244 2 Jubilee Insurance 3,070,091 1,439,177 1,245,048 3,272,680 9,026,996 88,399 88,399 3 United Assurance 2,186,121 142,365 219,712 1,065,249 3,613,447 236,911 236,911 4 National Insurance 192,258 422,390 72,899 301,071 988,618 15,680 41,561 57,241 5 Goldstar Insurance 1,243,152 451,040 149,770 3,435,940 5,279,902 6 E.A.Underwriters 843,122 248,538 264,111 453,381 1,809,152 604,739 604,739 7 Excel Insurance Co. 168,807 4,255 656,101 618,122 1,447,285 8 Lion Assurance Co. Ltd. 430,440 51,812 84,702 1,613,417 2,180,371 9 Insurance Co. of E.A 523,774 69,731 23,670 852,419 1,469,594 25,983 111,484 - 137,467 10 Statewide Insurance 52,294 75,676 27,868 151,947 307,785 11 First Insurance 153,183 22,539 120,496 468,460 764,678 12 Microcare Insurance - - - 310,568 310,568 13 Phoenix of (U) Assurance 358,880 594,586 6,525 293,294 1,253,285 14 TransAfrica Assurance 313,839 218,339 48,634 327,021 907,833 15 Leads Insurance Ltd. 87,338 50,061 39,582 374,894 551,875 16 E.A.General Insurance 43,938 12,079 115,334 3,979 175,330 17 NICO Insurance (U) Ltd. 68,544 31,617 (763) 100,176 199,574 18 Paramount Insurance 1,128 717 13,168 5,774 20,787 19 Rio Insurance 533 1,484 - 35,010 37,027 Total 12,112,253 5,063,481 3,809,585 18,703,032 39,688,351 41,663 1,083,094 - 1,124,757
Uganda Insurance Commission 42 2006 Annual Insurance Market Report Loss ratios - 2006
Non-Life Life Insurance Company Fire Marine/Av Motor Misc.Acc Average Life Indiv. Life DAP Average Group 1 AIG Uganda 54.20 (42.18) 62.17 27.05 44.77 2 Jubilee Insurance 73.21 27.18 40.55 19.80 37.98 - 13.25 - 160.97 3 United Assurance 33.34 37.53 36.71 29.53 33.49 - 13.25 - 13.05 4 National Insurance 9.45 (116.52) 23.74 25.94 20.89 51.65 15.54 217.84 80.15 5 Goldstar Insurance 98.28 14.52 43.12 16.95 36.03 6 E.A.Underwriters 138.08 20.11 38.00 43.53 40.40 - 3.27 - 3.16 7 Excel Insurance Co. 15.64 - 17.89 40.56 24.93 8 Lion Assurance Co. Ltd. 43.70 175.17 44.17 25.61 35.15 9 Insurance Co. of E.A 164.78 52.91 46.57 29.22 42.18 - 3.70 50.24 22.40 10 Statewide Insurance 4.55 7.58 57.32 19.61 31.69 11 First Insurance 2.02 26.21 12.05 10.63 11.38 12 Microcare Insurance - - - 83.29 83.29 13 Phoenix of (U) Assurance 47.85 58.57 44.61 16.54 37.92 14 TransAfrica Assurance 73.13 7.10 36.97 56.21 39.12 15 Leads Insurance Ltd. 10.42 26.97 33.62 0.40 14.76 16 E.A.General Insurance - 61.80 55.74 15.36 39.21 17 NICO Insurance (U) Ltd. 23.80 21.87 28.79 8.71 19.06 18 Paramount Insurance - - 4.83 5.13 4.91 19 Rio Insurance - - 7.35 - 6.18 Industry average 34.20 22.15 40.08 30.20 35.04 10.03 8.90 128.98 41.17
Uganda Insurance Commission 43 2006 Annual Insurance Market Report Net premium –2006
(Amount Ushs. ' 000) Non-Life Life Insurance Company Fire Marine/Av Motor Misc.Acc Total Life Indiv. Life DAP Total Group 1 AIG Uganda 633,053 32,879 5,472,212 5,282,586 11,420,730 2 Jubilee Insurance 281,879 245,763 3,946,906 838,252 5,312,800 - 101,192 211,620 312,812 3 United Assurance 1,312,669 853,945 2,991,949 3,491,932 8,650,495 - 693,405 10,529 703,934 4 National Insurance 1,045,337 49,090 2,700,309 2,080,518 5,875,254 54,947 767,618 371,560 1,194,125 5 Goldstar Insurance 197,266 143,081 1,607,129 780,494 2,727,970 6 E.A.Underwriters 87,775 136,319 1,493,652 865,172 2,582,918 - 910,675 31,838 942,513 7 Excel Insurance Co. 258,676 23,222 1,624,044 1,328,454 3,234,396 8 Lion Assurance Co. Ltd. 43,827 15,352 717,577 956,774 1,733,530 9 Insurance Co. of E.A 37,913 57,870 194,335 382,991 673,109 230,450 666,587 625,746 1,522,783 10 Statewide Insurance 296,641 293,938 1,160,325 1,088,732 2,839,636 11 First Insurance 115,410 28,501 1,542,814 686,146 2,372,871 12 Microcare Insurance - - - 2,632,567 2,632,567 13 Phoenix of (U) Assurance 91,575 86,536 916,996 451,220 1,546,327 14 TransAfrica Assurance 18,261 243,286 558,358 385,220 1,205,125 15 Leads Insurance Ltd. 90,130 90,828 481,180 603,899 1,266,037 16 E.A.General Insurance 119,066 40,785 811,966 376,726 1,348,543 17 NICO Insurance (U) Ltd. (4,978) 20,404 296,670 239,598 551,694 18 Paramount Insurance 7,797 3,093 233,660 224,603 469,153 19 Rio Insurance 1,487 2,292 329,342 30,046 363,167 Total 4,633,784 2,367,184 27,079,424 22,725,930 56,806,322 285,397 3,139,477 1,251,293 4,676,167
Uganda Insurance Commission 44 2006 Annual Insurance Market Report Net earned premium –2006
(Amount Ushs. ' 000) Non-Life Life Insurance Company Fire Marine/Av Motor Misc.Acc Total Life Indiv. Life DAP Total Group 1 AIG Uganda 539,800 24,705 5,330,319 5,397,526 11,292,350 2 Jubilee Insurance 203,888 214,900 3,693,864 787,820 4,900,472 101,192 211,620 312,812 3 United Assurance 1,128,934 729,712 3,225,075 3,329,036 8,412,757 693,405 10,529 703,934 4 National Insurance 762,144 51,707 2,482,530 1,735,807 5,032,188 54,947 767,618 371,560 1,194,125 5 Goldstar Insurance 146,250 162,907 1,493,074 848,458 2,650,689 6 E.A.Underwriters 51,438 185,585 1,495,140 746,325 2,478,488 910,675 31,838 942,513 7 Excel Insurance Co. 186,762 36,084 1,734,564 949,550 2,906,960 8 Lion Assurance Co. Ltd. 18,164 8,342 436,665 552,215 1,015,386 9 Insurance Co. of E.A 25,828 63,969 301,124 399,235 790,156 227,886 658,806 625,746 1,512,438 10 Statewide Insurance 280,468 328,509 1,145,843 1,144,822 2,899,642 11 First Insurance 89,029 22,492 1,488,706 681,096 2,281,323 12 Microcare Insurance - - - 1,630,043 1,630,043 13 Phoenix of (U) Assurance 81,752 74,759 964,238 411,705 1,532,454 14 TransAfrica Assurance 70,705 263,803 581,688 426,522 1,342,718 15 Leads Insurance Ltd. 114,280 85,985 457,466 639,400 1,297,131 16 E.A.General Insurance 98,702 31,978 646,569 315,985 1,093,234 17 NICO Insurance (U) Ltd. 3,736 40,998 239,204 237,649 521,587 18 Paramount Insurance 6,094 1,863 234,180 259,673 501,810 19 Rio Insurance 1,518 2,338 353,825 63,367 421,048 Total 3,809,492 2,330,636 26,304,074 20,556,234 53,000,436 282,833 3,131,696 1,251,293 4,665,822
Uganda Insurance Commission 45 2006 Annual Insurance Market Report Net incurred claims –2006
(Amount Ushs. ' 000) Non-Life Life Insurance Company Fire Marine/Av Motor Misc.Acc Total Life Indiv. Life DAP Total Group 1 AIG Uganda 292,597 (10,420) 3,314,054 1,459,813 5,056,044 2 Jubilee Insurance 149,270 58,410 1,497,687 155,952 1,861,319 13,412 490,117 503,529 3 United Assurance 376,344 273,894 1,184,018 982,898 2,817,154 91,867 91,867 4 National Insurance 72,016 (60,249) 589,281 450,290 1,051,338 28,382 119,274 809,413 957,069 5 Goldstar Insurance 143,735 23,660 643,759 143,779 954,933 6 E.A.Underwriters 71,025 37,323 568,143 324,859 1,001,350 29,814 29,814 7 Excel Insurance Co. 29,203 - 310,372 385,180 724,755 8 Lion Assurance Co. Ltd. 7,938 14,613 192,890 141,448 356,889 9 Insurance Co. of E.A 42,560 33,848 140,230 116,645 333,283 - 24,381 314,350 338,731 10 Statewide Insurance 12,750 24,893 656,816 224,463 918,922 11 First Insurance 1,797 5,895 179,400 72,410 259,502 12 Microcare Insurance - - - 1,357,644 1,357,644 13 Phoenix of (U) Assurance 39,115 43,787 430,194 68,084 581,180 14 TransAfrica Assurance 51,708 18,730 215,036 239,743 525,217 15 Leads Insurance Ltd. 11,908 23,193 153,790 2,574 191,465 16 E.A.General Insurance - 19,764 360,389 48,533 428,686 17 NICO Insurance (U) Ltd. 889 8,965 68,858 20,704 99,416 18 Paramount Insurance - - 11,304 13,319 24,623 19 Rio Insurance - - 26,008 - 26,008 Total 1,302,855 516,306 10,542,229 6,208,338 18,569,728 28,382 278,748 1,613,880 1,921,010
Uganda Insurance Commission 46 2006 Annual Insurance Market Report
Retention ratio – 2006
Non-Life Life Insurance Company Fire Marine/Av Motor Misc.Acc Average Life Indiv. Life Group DAP Average 1 AIG Uganda 21.05 2.61 88.33 51.28 55.00 2 Jubilee Insurance 8.41 14.59 76.02 20.39 37.05 - 53.37 - 77.97 3 United Assurance 37.52 85.71 93.16 76.62 70.54 - 74.53 - 74.82 4 National Insurance 84.47 10.41 97.37 87.36 85.60 77.80 94.86 - 95.43 5 Goldstar Insurance 13.70 24.08 91.48 18.51 34.07 6 E.A.Underwriters 9.43 35.42 84.97 65.62 58.81 - 60.09 - 60.92 7 Excel Insurance Co. 60.51 84.51 71.23 68.25 69.09 8 Lion Assurance Co. Ltd. 9.24 22.86 89.44 37.23 44.29 9 Insurance Co. of E.A 6.75 45.35 89.14 31.00 31.41 89.87 85.67 - 91.72 10 Statewide Insurance 85.01 79.53 97.65 87.75 90.22 11 First Insurance 42.97 55.84 92.76 59.43 75.63 12 Microcare Insurance - - - 89.45 89.45 13 Phoenix of (U) Assurance 20.33 12.70 99.29 60.61 55.23 14 TransAfrica Assurance 5.50 52.70 91.99 54.09 57.03 15 Leads Insurance Ltd. 50.79 64.47 92.40 61.70 69.64 16 E.A.General Insurance 73.04 77.15 87.56 98.95 88.49 17 NICO Insurance (U) Ltd. (7.83) 39.22 100.26 70.52 73.44 18 Paramount Insurance 87.36 81.18 94.67 97.49 95.76 19 Rio Insurance 73.61 60.70 100.00 46.18 90.75 Industry average 27.67 31.86 87.67 54.86 58.87 87.26 74.35 - 80.61
Uganda Insurance Commission 47 2006 Annual Insurance Market Report Reinsurance ratio – 2006
Non-Life Life Insurance Company Fire Marine/Av Motor Misc.Acc Average Life Indiv. Life Group DAP Average 1 AIG Uganda 78.95 97.39 11.67 48.72 45.00 2 Jubilee Insurance 91.59 85.41 23.98 79.61 62.95 - 46.63 - 22.03 3 United Assurance 62.48 14.29 6.84 23.38 29.46 - 25.47 - 25.18 4 National Insurance 15.53 89.59 2.63 12.64 14.40 22.20 5.14 - 4.57 5 Goldstar Insurance 86.30 75.92 8.52 81.49 65.93 6 E.A.Underwriters 90.57 64.58 15.03 34.38 41.19 - 39.91 - 39.08 7 Excel Insurance Co. 39.49 15.49 28.77 31.75 30.91 8 Lion Assurance Co. Ltd. 90.76 77.14 10.56 62.77 55.71 9 Insurance Co. of E.A 93.25 54.65 10.86 69.00 68.59 10.13 14.33 - 8.28 10 Statewide Insurance 14.99 20.47 2.35 12.25 9.78 11 First Insurance 57.03 44.16 7.24 40.57 24.37 12 Microcare Insurance - - - 10.55 10.55 13 Phoenix of (U) Assurance 79.67 87.30 0.71 39.39 44.77 14 TransAfrica Assurance 94.50 47.30 8.01 45.91 42.97 15 Leads Insurance Ltd. 49.21 35.53 7.60 38.30 30.36 16 E.A.General Insurance 26.96 22.85 12.44 1.05 11.51 17 NICO Insurance (U) Ltd. 107.83 60.78 (0.26) 29.48 26.56 18 Paramount Insurance 12.64 18.82 5.33 2.51 4.24 19 Rio Insurance 26.39 39.30 - 53.82 9.25 Industry average 72.33 68.14 12.33 45.14 41.13 12.74 25.65 - 19.39
Uganda Insurance Commission 48 2006 Annual Insurance Market Report Expense ratio - Non-Life (2006)
(Amount Ushs. ' 000) InsuranceCompany Commission Management Total Gross Expense Ratio = ME/ Commission/ (C) Expenses (ME) (C + ME) Premium [(C + ME)/Gross Prem]% Gross prem Gross prem 1 AIG Uganda 3,144,174 2,697,079 5,841,253 20,764,974 28.13 12.99 15.14 2 Jubilee Insurance 1,710,793 1,825,496 3,536,289 14,339,796 24.66 12.73 11.93 3 United Assurance 1,580,884 2,722,099 4,302,983 12,263,942 35.09 22.20 12.89 4 National Insurance 978,877 3,273,725 4,252,602 6,863,872 61.96 47.70 14.26 5 Goldstar Insurance 787,641 1,243,276 2,030,917 8,007,872 25.36 15.53 9.84 6 E.A.Underwriters 596,920 1,106,842 1,703,762 4,392,070 38.79 25.20 13.59 7 Excel Insurance Co. 740,312 1,556,857 2,297,169 4,681,681 49.07 33.25 15.81 8 Lion Assurance Co. Ltd. 573,347 1,415,058 1,988,405 3,913,901 50.80 36.15 14.65 9 Insurance Co. of E.A 336,378 916,096 1,252,474 2,142,703 58.45 42.75 15.70 10 Statewide Insurance 566,925 1,390,908 1,957,833 3,147,421 62.20 44.19 18.01 11 First Insurance 461,401 1,483,716 1,945,117 3,137,549 61.99 47.29 14.71 12 Microcare Insurance 105,840 356,758 462,598 2,943,135 15.72 12.12 3.60 13 Phoenix of (U) Assurance 389,486 778,001 1,167,487 2,799,612 41.70 27.79 13.91 14 TransAfrica Assurance 84,007 618,056 702,063 2,112,958 33.23 29.25 3.98 15 Leads Insurance Ltd. 331,206 642,770 973,976 1,817,912 53.58 35.36 18.22 16 E.A.General Insurance 202,650 1,101,730 1,304,380 1,523,873 85.60 72.30 13.30 17 NICO Insurance (U) Ltd. 66,620 711,904 778,524 751,268 103.63 94.76 8.87 18 Paramount Insurance 60,341 526,591 586,932 489,940 119.80 107.48 12.32 19 Rio Insurance 41,658 267,591 309,249 400,194 77.27 66.87 10.41 Total 12,759,460 24,634,553 37,394,013 96,494,673 Industry average 38.75 25.53 13.22
Uganda Insurance Commission 49 2006 Annual Insurance Market Report Expense ratio - Life (2006)
(Amount Ushs. ' 000) Commission Management Total Gross Expense Ratio = ME/ Commission/ Expenses (ME) Premium Gross prem Gross prem InsuranceCompany (C) (C + ME) [(C + ME)/Gross Prem]%
1 United Assurance 184,337 247,464 431,801 940,845 45.90 26.30 19.59 2 Jubilee Insurance 30,808 41,234 72,042 401,211 17.96 10.28 7.68 3 National Insurance 107,312 1,518,069 1,625,381 1,251,366 129.89 121.31 8.58 4 E.A.Underwriters 239,092 510,545 749,637 1,547,252 48.45 33.00 15.45 5 Insurance Co. of E.A 81,954 229,024 310,978 1,660,250 18.73 13.79 4.94 Total 643,503 2,546,336 3,189,839 5,800,924 - - - Industry average 54.99 43.90 11.09
Uganda Insurance Commission 50 2006 Annual Insurance Market Report
Return on equity (%) - Non-Life (2006)
InsuranceCompany Profit/loss after Shareholders' Return on equity tax funds 1 AIG Uganda 3,443,658 9,169,088 37.56 2 United Assurance 1,145,319 6,778,430 16.90 3 Jubilee Insurance 1,314,674 5,261,836 24.99 4 National Insurance 906,667 7,433,776 12.20 5 Goldstar Insurance 276,167 11,980,800 2.31 6 Insurance Co. of E.A (43,855) 1,595,471 (2.75) 7 E.A.Underwriters 231,699 3,454,027 6.71 8 Excel Insurance Co. 136,220 183,915 74.07 9 Statewide Insurance 234,688 4,032,779 5.82 10 Phoenix of (U) Assurance (4,676) 1,166,045 (0.40) 11 First Insurance 456,868 1,792,804 25.48 12 TransAfrica Assurance 324,391 2,475,746 13.10 13 Lion Assurance Co. Ltd. (189,305) 7,614,190 (2.49) 14 Leads Insurance Ltd. 9,200 1,533,615 0.60 15 E.A.General Insurance 233,481 12,531,716 1.86 16 Microcare Insurance (182,577) 880,071 (20.75) 17 Rio Insurance 12,932 952,438 1.36 18 Paramount Insurance (135,405) 64,626 (209.52) 19 NICO Insurance (U) Ltd. (319,987) 1,145,995 (27.92) 7,850,159 80,047,368 9.81
Uganda Insurance Commission 51 2006 Annual Insurance Market Report Number of policies issued (New) – 2006
Non-Life Life Insurance Company Fire Marine/Av Motor Misc.Acc Total Life Indiv. Life Group DAP Total 1 AIG Uganda Ltd 145 30 1,517 824 2,516 - 2 United Assurance 258 421 4,802 727 6,208 21 6 - 27 3 Jubilee Insurance 460 1,346 1,168 250 3,224 - 4 - 4 4 National Insurance 256 101 1,414 188 1,959 51 18 - 69 5 Goldstar Insurance 106 733 303 267 1,409 - 6 E.A.Underwriters 11 94 112 74 291 2 5 2 9 7 Insurance Co. of E.A 34 4 67 48 153 300 16 10 326 8 Statewide Insurance 74 245 7,031 276 7,626 - 9 Excel Insurance Co. 201 28 41,215 1,515 42,959 - 10 First Insurance 72 26 29,388 240 29,726 - 11 TransAfrica Assurance 45 305 3,750 72 4,172 - 12 Paramount Insurance 22 8 5,694 588 6,312 - 13 NICO Insurance (U) Ltd. 20 2 204 37 263 - 14 Rio Insurance 2 1 18,256 21 18,280 - 15 E.A.General Insurance 66 60 330 5,913 6,369 - 16 Lion Assurance Co. Ltd. 84 33 1,056 277 1,450 - 17 Phoenix of (U) Assurance 181 92 1,025 346 1,644 - 18 Leads Insurance Ltd.* - - 19 Microcare Insurance - - - 79 79 Total 2,037 3,529 117,332 11,742 134,640 374 49 12 435
Note: * Did not submit the information
Uganda Insurance Commission 52 2006 Annual Insurance Market Report
Number of policies (Renewals) – 2006
Non-Life Life Insurance Company Fire Marine/Av Motor Misc.Acc Total Life Indiv. Life Group DAP Total 1 AIG Uganda Ltd 294 15 1,247 2,616 4,172 -
2 United Assurance 845 29 1,731 857 3,462 36 10 - 46 3 Jubilee Insurance 612 17 1,000 563 2,192 - - 9 9 4 National Insurance 413 9 682 253 1,357 47 4 5 56 5 Goldstar Insurance 345 10 397 739 1,491 - 6 E.A.Underwriters 76 12 461 356 905 - 9 1 10 7 Insurance Co. of E.A 81 - 158 223 462 - - - - 8 Statewide Insurance 205 22 6,969 351 7,547 - 9 Excel Insurance Co. 137 2 11,837 180 12,156 - 10 First Insurance 95 6 246 247 594 - 11 TransAfrica Assurance 184 24 1,901 294 2,403 - 12 Paramount Insurance 49 - 739 172 960 - 13 NICO Insurance (U) Ltd. 43 29 388 103 563 - 14 Rio Insurance 6 - 1,421 12 1,439 - 15 E.A.General Insurance 11 2 38 52 103 - 16 Lion Assurance Co. Ltd. 41 19 1,092 193 1,345 - 17 Phoenix of (U) Assurance 118 12 279 221 630 -
18 Leads Insurance Ltd.* - - 19 Microcare Insurance - - - 30 30 Total 3,555 208 30,586 7,462 41,811 83 23 15 121
Note: * Did not submit the information
Uganda Insurance Commission 53 2006 Annual Insurance Market Report New Non-Life number of group policies – 2006
Workers Health Group Microinsurance/ Group Company Compensation Insurance Personal Acc. Microfinance Credit Total 1 AIG Uganda Ltd. 48 - 82 15 - 145 2 The Jubilee Insurance Co. of Uganda Ltd. 71 - 41 - - 112 3 United Assurance Company Ltd. 89 - 35 - 4 128 4 National Insurance Corporation Ltd. 29 - 12 15 - 56 5 Goldstar Insurance Company Ltd. 23 - 12 - - 35 6 E.African Underwriters Ltd. 9 1 4 - - 14 7 Excel Insurance Company Ltd. 64 - 16 - - 80 8 Lion Assurance Company Ltd. 41 - 29 4 74 9 Insurance Company of E.Africa (U) Ltd. 5 - 3 - - 8 10 Statewide Insurance Company Ltd. 16 - 7 - - 23 11 First Insurance Company Ltd. 19 - 18 - 1 38 12 Microcare Insurance Ltd. 5 70 3 30 - 108 13 Phoenix of Uganda Assurance Company Ltd. 49 - 24 - - 73 14 TransAfrica Assurance Company Ltd. 11 - 4 - - 15 15 Leads Insurance Ltd. 57 - - - - 57 16 The E.Africa General Insurance Company Ltd. 21 - 9 - - 30 17 NICO Insurance Uganda Ltd. 13 - 5 - - 18 18 Paramount Insurance Company Ltd. - - - - - 19 Rio Insurance Company Ltd. 2 - 1 - - 3 Total 572 2,421 305 64 5 3,367
Uganda Insurance Commission 54 2006 Annual Insurance Market Report New Non-Life number of individuals covered by group policies – 2006
Workers Health Group Microinsurance/ Group Company Compensation Insurance Personal Acc. Microfinance Credit Total 1 AIG Uganda Ltd. 1,200 2,350 455 10,500 - 14,505 2 The Jubilee Insurance Co. of Uganda Ltd. 2,998 - 2,088 - - 5,086 3 United Assurance Company Ltd. 19,115 7,400 - 1,047 27,562 4 National Insurance Corporation Ltd. 1,238 - 207 6,057 7,502 5 Goldstar Insurance Company Ltd. 423 - 22 - - 445 6 E.African Underwriters Ltd. 422 4 331 - - 757 7 Excel Insurance Company Ltd. 11,480 - 493 - - 11,973 8 Lion Assurance Company Ltd. 1,437 - 780 938 - 3,155 9 Insurance Company of E.Africa (U) Ltd. 70 - 26 - - 96 10 Statewide Insurance Company Ltd. 460 - 1,241 - - 1,701 11 First Insurance Company Ltd. 1,030 - 129 - 1,316 2,475 12 Microcare Insurance Ltd. 106 5,253 36 3,781 8,772 17,948 13 Phoenix of Uganda Assurance Company Ltd. 2,850 - 451 - - 3,301 14 TransAfrica Assurance Company Ltd. 272 - 628 - - 900 15 Leads Insurance Ltd. 1,295 - - - - 1,295 16 The E.Africa General Insurance Company Ltd. 233 - 75 - - 308 17 NICO Insurance Uganda Ltd. 382 - 535 - - 917 18 Paramount Insurance Company Ltd. ------19 Rio Insurance Company Ltd. 20 - 2 22 Total 45,031 7,607 14,899 21,276 11,135 99,948
Uganda Insurance Commission 55 2006 Annual Insurance Market Report
New Life number of individuals covered by group policies – 2006
Life Life Deposit Admin Company Individual Group Plan TOTAL 1 The Jubilee Insurance Co. of Uganda Ltd. - - - - 2 United Assurance Company Ltd. 69 1,224 - 1,293 3 National Insurance Corporation Ltd. 51 680,100 - 680,151 4 E.African Underwriters Ltd. 2 478,327 41 478,370 5 Insurance Company of E.Africa (U) Ltd. 300 6,104 243 6,647 Total 422 1,165,755 284 1,166,461
Life number of individuals covered by group policies – Renewed for 2006
Life Life Deposit Admin Company Individual Group Plan TOTAL 1 The Jubilee Insurance Co. of Uganda Ltd. - - - - 2 United Assurance Company Ltd. 47 5,714 - 5,761 3 National Insurance Corporation Ltd. 47 7,544 266 7,857 4 E.African Underwriters Ltd. - 1,562 19 1,581 5 Insurance Company of E.Africa (U) Ltd. - - - - Total 94 14,820 285 15,199
Uganda Insurance Commission 56 2006 Annual Insurance Market Report
Non-Life number of group policies – Renewed for 2006
Workers Health Group Microinsurance/ Group Company Compensation Insurance Personal Acc. Microfinance Credit Total 1 AIG Uganda Ltd. 114 - 150 22 286 2 The Jubilee Insurance Co. of Uganda Ltd. 200 - 41 - - 241 3 United Assurance Company Ltd. 66 - 15 - 3 84 4 National Insurance Corporation Ltd. 42 - 20 1 63 5 Goldstar Insurance Company Ltd. 96 - 47 - 1 144 6 E.African Underwriters Ltd. 56 - 18 - - 74 7 Excel Insurance Company Ltd. 49 - 3 - - 52 8 Lion Assurance Company Ltd. 21 - 22 3 - 46 9 Insurance Company of E.Africa (U) Ltd. 7 - 5 - - 12 10 Statewide Insurance Company Ltd. 36 - 11 - - 47 11 First Insurance Company Ltd. 3 - - - - 3 12 Microcare Insurance Ltd. 5 22 3 99 129 13 Phoenix of Uganda Assurance Company Ltd. 53 7 - - 60 14 TransAfrica Assurance Company Ltd. 63 - 6 - - 69 15 Leads Insurance Ltd. 19 - - - 19 16 The E.Africa General Insurance Company Ltd. 9 - 1 - - 10 17 NICO Insurance Uganda Ltd. 2 - 2 - - 4 18 Paramount Insurance Company Ltd. 1 - - - - 1 19 Rio Insurance Company Ltd. ------Total 842 22 351 125 4 1,344
Uganda Insurance Commission 57 2006 Annual Insurance Market Report
Non-Life number of individuals covered by group policies – Renewed for 2006
Workers Health Group Microinsurance/ Group Company Compensation Insurance Personal Acc. Microfinance Credit Total 1 AIG Uganda Ltd. 2,166 - 3,950 8,000 - 14,116 2 The Jubilee Insurance Co. of Uganda Ltd. 7,135 - 1,374 - - 8,509 3 United Assurance Company Ltd. 17,812 - 3,800 - 4,911 26,523 4 National Insurance Corporation Ltd. 5,671 - 1,188 7,144 14,003 5 Goldstar Insurance Company Ltd. 7,564 - 571 - 1 8,136 6 E.African Underwriters Ltd. 11,321 - 555 - - 11,876 7 Excel Insurance Company Ltd. 5,179 - 93 - - 5,272 8 Lion Assurance Company Ltd. 930 - 628 806 2,364 9 Insurance Company of E.Africa (U) Ltd. 185 - 82 - - 267 10 Statewide Insurance Company Ltd. 3,342 - 797 - - 4,139 11 First Insurance Company Ltd. 118 - 29 - - 147 12 Microcare Insurance Ltd. 3,531 2,517 115 16,340 22,503 13 Phoenix of Uganda Assurance Company Ltd. 1,697 - 190 - - 1,887 14 TransAfrica Assurance Company Ltd. 7,723 - 78 - - 7,801 15 Leads Insurance Ltd. 767 767 16 The E. Africa General Insurance Company Ltd. 246 - 2 - - 248 17 NICO Insurance Uganda Ltd. 30 - 44 - - 74 18 Paramount Insurance Company Ltd. 25 - - - 25 19 Rio Insurance Company Ltd. - Total 77,126 2,561 14,290 32,540 4,912 131,337
Uganda Insurance Commission 58 2006 Annual Insurance Market Report Insurance companies’ balance sheet (Non-Life) – as at 31st December 2006
AIG Ins. Co. of E.A. GoldStar United Jubilee Statewide Excel National NICO Uganda Ltd E. Africa Underwriters Insurance Assurance Insurance Insurance Insurance Insurance Insurance Co. PARTICULARS Shs.(000') Shs.(000') Shs.(000') Shs.(000') Shs.(000') Shs.(000') Shs.(000') Shs.(000') Shs.(000') Shs.(000')
A: SHARE CAPITAL: Issued and Fully Paid up 1,500,000 1,800,000 2,050,000 2,500,000 2,255,044 1,050,000 1,255,347 1,800,000 2,019,400 1,054,149
B: RESERVES: Contingency 2,705,528 285,944 618,394 1,322,892 1,595,477 1,593,144 443,620 349,012 1,118,334 84,754 Capital 176,273 47,701 67,846 124,332 168,244 676,406 14,170 90,828 9,359 Revaluation 485,391 307,459 1,415,117 (179,268) Revenue 4,301,896 (490,473) 430,473 8,090,062 2,499,402 1,872,282 242,290 3,397,454 (1,120,376) Provision for Dividends 2,700,000 304,175 315,000 807,760 Fair Value Gains 263,166 General Share Premium Share application funds 1,118,109 Minority Interest 680,998 SHAREHOLDERS FUNDS 11,869,088 1,595,471 3,454,027 11,980,800 6,778,430 5,261,836 4,713,778 1,983,914 7,433,776 1,145,995
NON CURRENT LIABILITIES Shareholders Loan Finance Lease Obligation 7,862 Deferred Taxation 98,505 24,535
CAPITAL EMPLOYED 11,869,088 1,595,471 3,552,532 12,005,335 6,778,430 5,261,836 4,713,778 1,983,914 7,433,776 1,153,857 OTHER RESERVES Insurance Funds Any other reserves Long term Group Balances CAPITAL EMPLOYED 11,869,088 1,595,471 3,552,532 12,005,335 6,778,430 5,261,836 4,713,778 1,983,914 7,433,776 1,153,857
Uganda Insurance Commission 59 2006 Annual Insurance Market Report
AIG Ins. Co. of E.A. GoldStar United Jubilee Statewide Excel National NICO Uganda Ltd E. Africa Underwriters Insurance Assurance Insurance Insurance Insurance Insurance Insurance Co. PARTICULARS Shs.(000') Shs.(000') Shs.(000') Shs.(000') Shs.(000') Shs.(000') Shs.(000') Shs.(000') Shs.(000') Shs.(000') Represented by C NON CURRENT ASSETS: Land and Buildings 1,005,687 1,134,447 1,480,488 193,727 Motor Vehicles 88,954 17,097 96,766 38,367 118,431 106,110 12,430 16,989 318,001 39,485 Office Equipment Computer equipment 93,560 11,473 5,646 73,557 78,162 25,277 18,548 27,610 87,187 32,252 Furniture , fixtures & fittings 117,276 114,246 90,094 81,085 239,189 108,420 123,525 14,518 329,091 23,584 Deferred Tax Asset 188,785 228,239 40,597 Prepaid Lease Rentals 6,694 245,501 Intangible Asset Work in progress 32,100 3,040,000 1,312,171 331,601 192,506 193,009 467,882 468,046 4,328,950 1,539,605 1,173,507 135,918 D INVESTMENTS: Government Securities 8,492,395 202,138 651,149 599,949 929,491 2,138,328 1,258,212 350,681 404,321 991,169 Corporate Bonds 800,000 104,541 Deposits with Commercial Bank 5,162,390 935,860 2,867,133 268,917 2,899,294 536,443 23,437 1,675,479 15,141 Statutory Deposits 165,626 300,492 221,565 263,726 290,129 339,149 102,021 124,920 331,957 124,220 Equity Investments 538,651 673,588 125,567 550,759 159,197 608,998 Investment Property 1,030,000 10,608,262 5,356,000 Mortgage Loans 388,385 115,535 Capital Developments 89,492 14,620,411 1,041,281 2,482,162 4,886,375 12,096,799 6,420,456 2,145,365 499,038 8,492,290 1,130,530 E CURRENT ASSETS Premium Outstanding 2,458,051 1,004,719 497,948 2,967,310 2,537,495 4,770,207 747,868 1,294,451 1,715,751 206,036 Trade Receivable Group Balances 529,782 283,940 225,040 7,114,855 119,113 178,667 Sundry Debtors 1,486,697 276,209 347,708 173,707 57,140 593,265 Dues from Insurers 3,357,224 48,871 Amounts due from reinsurers 716,745 765,640 4,927,944 147,456 20,258
Uganda Insurance Commission 60 2006 Annual Insurance Market Report
AIG Ins. Co. of E.A. GoldStar United Jubilee Statewide Excel National NICO Uganda Ltd E. Africa Underwriters Insurance Assurance Insurance Insurance Insurance Insurance Insurance Co. PARTICULARS Shs.(000') Shs.(000') Shs.(000') Shs.(000') Shs.(000') Shs.(000') Shs.(000') Shs.(000') Shs.(000') Shs.(000') Mortagage loans 1,699,800 Corporation Tax Recoverable 109,931 170,157 146,225 51,580 83,899 13,236 Other Assets 59,459 637,691 308,808 822,223 10,701 22,977 Deferred acquistion costs Inter-fund account 2,312,075 Preoperating expenses Stocks 11,878 Prepayments 176,834 Staff Debtors 58,444 37,151 Cash in Bank and at Hand 2,224,565 9,193 747,684 313,043 361,163 256,278 468,972 288,331 414,212 56,960 6,699,095 2,350,265 3,918,094 10,742,916 4,143,263 14,399,214 1,471,570 1,905,487 5,445,325 368,338 F CURRENT LIABILITIES Directors Loan 290,000 Reinsurance premiums payable 488,338 872,122 551,621 1,890,283 1,074,590 2,184,629 224,151 657,510 75,009 Sundry Creditors 1,388,240 168,946 600,893 41,791 556,992 Group Balances 916,797 257,941 22,465 148,889 Provision of Tax 84,599 103,208 495,028 27,055 Inter-fund account 33,982 Gratuity Provisions 124,544 Defered Tax 130,641 1,142,883 26,514 427,868 Bank Overdraft Premuims Payable 459,467 35,605 18,085 Other Creditors 175,063 168,299 561,119 224,527 17,741 132,729 Payroll liabilities Audit Fee Provision Outsatnding Expenses Commision Payable Finance Lease Obligation 15,792 Dividends payable Claims Outstanding
Uganda Insurance Commission 61 2006 Annual Insurance Market Report
AIG Ins. Co. of E.A. GoldStar United Jubilee Statewide Excel National NICO Uganda Ltd E. Africa Underwriters Insurance Assurance Insurance Insurance Insurance Insurance Insurance Co. PARTICULARS Shs.(000') Shs.(000') Shs.(000') Shs.(000') Shs.(000') Shs.(000') Shs.(000') Shs.(000') Shs.(000') Shs.(000') Deferred Comission 984,092 Bank Loan 3,008,615 1,758,476 749,149 2,451,790 2,778,592 4,177,012 616,679 269,291 1,766,914 223,530 G. UNDERWRITING RESERVES Unexpired Risk Reserve 5,477,805 269,244 1,033,163 1,091,188 3,460,197 6,525,924 1,135,854 1,290,926 2,350,102 220,012 Outstanding Claims Reserves 735,131 86,919 1,257,918 273,987 3,690,725 5,322,944 1,479,574 399,999 3,436,374 32,510 Claims Incurred but not reported 1,541,038 13,037 123,956 4,877 Any other reserves 7,753,974 369,200 2,291,081 1,365,175 7,150,922 11,848,868 2,615,428 1,690,925 5,910,432 257,399
NET ASSETS 11,869,088 1,595,471 3,552,532 12,005,335 6,778,430 5,261,836 4,713,778 1,983,914 7,433,776 1,153,857
Uganda Insurance Commission 62 2006 Annual Insurance Market Report
………………(Non-Life balance sheet continued)
Rio TransAfrica Leads First Phoenix Lion E.A General Microcare Paramount Total Insurance Assurance Insurance Insurance Assurance Assurance Insuramce Insurance Insurance Shs.(000') PARTICULARS Shs.(000') Shs.(000') Shs.(000') Shs.(000') Shs.(000') Shs.(000') Shs.(000') Shs.(000') Shs.(000')
A: SHARE CAPITAL: Issued and Fully Paid up 1,050,000 1,610,000 1,811,862 1,204,232 1,315,000 3,220,862 2,000,000 1,100,000 1,012,500 31,608,396 - B: RESERVES: - Contingency 95,250 402,779 88,920 384,058 173,574 126,415 30,478 68,522 73,916 11,561,011 Capital 50,747 75,532 3,699 11,345 1,516,482 Revaluation 62,285 (231,967) 259,630 13,434,000 15,552,647 Revenue (97,562) 349,934 37,217 (326,229) (2,503,825) (2,902,284) (219,929) (20,635) 13,539,697 Provision for Dividends 4,126,935 Fair Value Gains 91,765 354,931 General (135,199) (135,199) Share Premium 6,511,108 6,511,108 Share application funds 1,118,109 Minority Interest 680,998 SHAREHOLDERS FUNDS 1,047,688 2,475,745 1,533,616 1,792,804 1,166,044 7,614,190 12,562,194 948,593 1,077,126 86,435,115 - NON CURRENT LIABILITIES - Shareholders Loan 48,933 1,409,529 1,458,462 Finance Lease Obligation 7,862 Deferred Taxation 123,040
- CAPITAL EMPLOYED 1,047,688 2,475,745 1,533,616 1,792,804 1,166,044 7,663,123 13,971,723 948,593 1,077,126 88,024,479 OTHER RESERVES - Insurance Funds - Any other reserves - Long term Group Balances - CAPITAL EMPLOYED 1,047,688 2,475,745 1,533,616 1,792,804 1,166,044 7,663,123 13,971,723 948,593 1,077,126 88,024,479
Uganda Insurance Commission 63 2006 Annual Insurance Market Report
Rio TransAfrica Leads First Phoenix Lion E.A General Microcare Paramount Total Insurance Assurance Insurance Insurance Assurance Assurance Insuramce Insurance Insurance Shs.(000') PARTICULARS Shs.(000') Shs.(000') Shs.(000') Shs.(000') Shs.(000') Shs.(000') Shs.(000') Shs.(000') Shs.(000') Represented by C NON CURRENT ASSETS: - Land and Buildings 1,185,678 405,304 1,060,000 13,443,159 1,034,222 20,942,712 Motor Vehicles 7,900 16,529 54,666 18,098 18,601 65,899 10,501 3,046 1,047,870 Office Equipment 109,170 2,575 111,745 Computer equipment 100 8,692 28,095 3,783 14,992 1 1,098 3,504 513,537 Furniture , fixtures & fittings 1,000 20,429 97,258 89,069 56,334 44,305 93,833 840 5,970 1,650,066 Deferred Tax Asset 49,261 506,882 Prepaid Lease Rentals 252,195 Intangible Asset 545,011 545,011 Work in progress 3,072,100 1,194,678 450,954 1,240,019 107,167 127,979 670,207 13,656,664 4,984 1,046,271 28,642,118 D INVESTMENTS: - Government Securities 45,000 1,575,319 119,513 209,307 1,467,655 40,328 10,000 19,484,955 Corporate Bonds 2,000,000 2,904,541 Deposits with Commercial Bank 454,875 708,050 575,217 504,305 200,000 20,000 19,074 16,865,615 Statutory Deposits 119,545 225,905 204,948 119,828 104,582 970,407 208,886 111,998 100,188 4,430,092 Equity Investments 230,815 2,318,918 304,684 5,511,177 Investment Property 149,710 17,143,972 Mortgage Loans 503,920 Capital Developments 89,492 164,545 2,256,099 1,062,708 1,045,373 818,194 6,956,980 513,570 172,326 129,262 66,933,764 E CURRENT ASSETS - Premium Outstanding 35,483 514,424 830,810 780,054 886,545 1,966,497 890,060 577,051 235,567 24,916,327 Trade Receivable 525,541 525,541 Group Balances 149,979 962,821 1,444,631 79,350 11,088,178 Sundry Debtors 136,921 16,754 3,088,401 Dues from Insurers 231,501 3,637,596 Amounts due from reinsurers 64,057 970,536 7,612,636
Uganda Insurance Commission 64 2006 Annual Insurance Market Report
Rio TransAfrica Leads First Phoenix Lion E.A General Microcare Paramount Total Insurance Assurance Insurance Insurance Assurance Assurance Insuramce Insurance Insurance Shs.(000') PARTICULARS Shs.(000') Shs.(000') Shs.(000') Shs.(000') Shs.(000') Shs.(000') Shs.(000') Shs.(000') Shs.(000') Mortagage loans 1,699,800 Corporation Tax Recoverable 4,093 17,876 30,076 627,073 Other Assets 9,879 46,527 33,833 466,429 16,877 131,607 2,567,011 Deferred acquistion costs 123,706 123,706 Inter-fund account 2,312,075 Preoperating expenses 9,693 9,693 Stocks 11,878 Prepayments 2,500 106,493 294,700 52,500 633,027 Staff Debtors 8,380 8,385 50,389 162,749 Cash in Bank and at Hand 60,356 269,277 42,817 64,352 179,076 788,193 195,038 51,262 6,790,772 109,811 1,046,764 1,044,381 3,582,186 1,536,853 3,280,231 1,115,174 2,265,436 382,060 65,806,463 F CURRENT LIABILITIES - Directors Loan 290,000 Reinsurance premiums payable 70,863 195,256 501,025 169,309 252,815 1,552,114 141,106 40,010 10,940,751 Sundry Creditors 62,882 78,512 430,099 61,257 3,389,612 Group Balances 76,547 38,121 1,460,760 Provision of Tax 7,691 (26,563) 60,216 13,643 7,010 92,020 863,907 Inter-fund account (2,278,093 ) Gratuity Provisions 124,544 Defered Tax 27,471 1,755,377 Bank Overdraft 314,152 122,679 54,336 55,147 546,314 Premuims Payable 35,321 548,478 Other Creditors 196,746 15,888 349,375 123,484 259,160 8,000 5,979 2,238,110 Payroll liabilities 15,718 15,718 Audit Fee Provision 15,080 15,080 Outsatnding Expenses 15,073 15,073 Commision Payable 32,236 32,236 Finance Lease Obligation 15,792 Dividends payable 11,251 11,251 Claims Outstanding 344,959 130,343 475,302
Uganda Insurance Commission 65 2006 Annual Insurance Market Report
Rio TransAfrica Leads First Phoenix Lion E.A General Microcare Paramount Total Insurance Assurance Insurance Insurance Assurance Assurance Insuramce Insurance Insurance Shs.(000') PARTICULARS Shs.(000') Shs.(000') Shs.(000') Shs.(000') Shs.(000') Shs.(000') Shs.(000') Shs.(000') Shs.(000') Deferred Comission 46,526 1,030,618 Bank Loan 350,000 350,000 267,609 312,355 1,268,335 729,050 466,489 2,212,615 492,435 355,535 248,434 24,152,905 G. UNDERWRITING RESERVES - Unexpired Risk Reserve 142,632 538,470 506,415 1,255,020 618,531 1,009,284 539,417 1,138,618 187,661 28,790,463 Outstanding Claims Reserves 427,247 32,931 957,852 201,706 245,072 38,584 18,619,473 Claims Incurred but not reported 11,105 5,811 30,256 22,396 36,761 5,788 1,795,025 Any other reserves - 153,737 965,717 545,157 2,212,872 850,493 1,031,680 821,250 1,138,618 232,033 49,204,961 - NET ASSETS 1,047,688 2,475,745 1,533,616 1,792,804 1,166,044 7,663,123 13,971,723 948,593 1,077,126 88,024,479
Uganda Insurance Commission 66 2006 Annual Insurance Market Report Insurance companies’ balance sheet (Life) – as at 31st December 2006
AIG Ins. Co. of E.A. National United Jubilee Totals Uganda Ltd E. Africa Underwriters Insurance Assurance Insurance PARTICULARS Shs.(000') Shs.(000') Shs.(000') Shs.(000') Shs.(000') Shs.(000') Shs.(000') A: SHARE CAPITAL: Issued and fully paid up 1,000,000 390,183 1,050,000 2,440,183 - B: RESERVES: - Capital - Profit & loss - Revaluation - Contingency reserve 29,278 19,666 27,552 76,496 SHAREHOLDERS FUNDS 1,029,278 19,666 - 417,735 1,050,000 2,516,679 - NON CURRENT LIABILITIES - Deposit Admin fund 56,693 56,693 Deferred taxation - long term life fund 3,953 2,526,722 384,931 6,196,839 9,112,445 CAPITAL EMPLOYED 3,953 3,556,000 461,290 6,196,839 417,735 1,050,000 11,685,817 - Represented by: - C: NON CURRENT ASSETS: - Land and buildings - Motor vehicles - Computer equipment 5,924 59 5,983 Furniture, fixtures & fittings 202,441 48,420 250,861 Deffred Tax Assets 2,008 257 2,265 Prepaid lease rentals - - - 7,932 202,441 48,420 316 259,109 D: INVESTMENTS: - Government securities 1,611,974 8,381,276 192,454 10,185,704 Treasury bills 180,054 839,817 557,232 1,577,103 Fixed deposits 1,079,484 679,408 289,018 1,640,894 3,688,804 Other investments - BOU stat deposit -
Uganda Insurance Commission 67 2006 Annual Insurance Market Report
………………(Life balance sheet continued)
AIG Ins. Co. of E.A. National United Jubilee Totals Uganda Ltd E. Africa Underwriters Insurance Assurance Insurance PARTICULARS Shs.(000') Shs.(000') Shs.(000') Shs.(000') Shs.(000') Shs.(000') Shs.(000') Other investments 113,336 50,000 24,025 315,000 502,361 Prepayment of qouoted shares 1,505,000 1,505,000 Investment Property 11,933,000 720,000 700,000 13,353,000 Quoted shares 6,302,973 6,302,973 - 2,804,794 909,462 28,986,091 1,566,250 2,848,348 37,114,945 E: CURRENT ASSETS: - Premium outstanding 493,689 281,944 5,012 780,645 Outstanding reinsurance premiums 269,205 156,243 314,384 22,949 762,781 Group balances - Sundry debtors 35,363 1,110,209 1,145,572 Corporation tax recoverable 5,845 5,845 Other current assets 45,754 10,656 56,410 Cash in Bank and at hand 10,204 761,931 194,197 46,473 190,780 129,914 1,333,499 Short term loans - Other receivables 24,419 357,258 381,677 10,204 843,048 493,666 1,806,614 1,144,366 168,531 4,466,429 F: CURRENT LIABILTIES: - Reinsurance premium payable 64,439 305,901 131,452 304,850 806,642 Deposit Admin fund 19,765,587 10,980 817,702 20,594,269 Premiums payable 6,251 228,000 1,695,126 1,929,377 Sundry creditors 27,403 242,432 32,816 302,651 Group balances 2,312,075 (33,982) 2,278,093 Other creditors 401,940 94,361 393,855 890,156 Provision for tax 22,441 22,441 Reinsurance Creditors 333,928 333,928 Deferred Tax 1,953,248 235,984 2,189,232 Lon Term Insurance fund 349,156 349,156 Provision for dividends - 6,251 91,842 935,841 24,404,794 2,341,301 1,915,916 29,695,945
Uganda Insurance Commission 68 2006 Annual Insurance Market Report
AIG Ins. Co. of E.A. National United Jubilee Totals Uganda Ltd E. Africa Underwriters Insurance Assurance Insurance Shs.(000') Shs.(000') Shs.(000') Shs.(000') Shs.(000') Shs.(000') Shs.(000') G: UNDERWRITING RESERVES: - Contingency Reserve 32,224 16,856 49,080 Outstanding claims reserves 34,423 13,929 361,289 409,641 - 13,929 393,513 - 51,279 458,721 NET ASSETS 3,953 3,556,000 461,290 6,196,839 417,735 1,050,000 11,685,817
Uganda Insurance Commission 69 2006 Annual Insurance Market Report Non-Life current asset ratio - 2006
Current assets Current liabilities Current asset Insurance Company (Shs. ' 000) (Shs. ' 000) ratio 1 AIG Uganda 6,699,095 3,008,615 2.23 2 Jubilee Insurance 14,399,214 4,177,012 3.45 3 United Assurance 4,143,263 2,778,592 1.49 4 National Insurance 5,445,325 1,766,914 3.08 5 Goldstar Insurance 10,742,916 2,451,790 4.38 6 E.A.Underwriters 3,918,094 749,149 5.23 7 Excel Insurance Co. 1,905,487 269,291 7.08 8 Lion Assurance Co. Ltd. 3,280,231 2,212,615 1.48 9 Insurance Co. of E.A 2,350,265 1,758,476 1.34 10 Statewide Insurance 1,471,570 616,679 2.39 11 First Insurance 3,582,186 729,050 4.91 12 Microcare Insurance 2,265,436 355,535 6.37 13 Phoenix of (U) Assurance 1,536,853 466,489 3.29 14 TransAfrica Assurance 1,046,764 312,355 3.35 15 Leads Insurance Ltd. 1,044,381 1,268,335 0.82 16 E.A.General Insurance 1,115,174 492,435 2.26 17 NICO Insurance (U) Ltd. 368,338 223,530 1.65 18 Paramount Insurance 382,060 248,434 1.54 19 Rio Insurance 109,811 267,609 0.41 Industry Total 65,806,463 24,152,905 - Industry Average 2.72
Uganda Insurance Commission 70 2006 Annual Insurance Market Report
Life current asset ratio (%) - (2006)
Current assets Current liabilities Current asset
Insurance Company (Shs. ' 000) (Shs. ' 000) ratio
1 AIG Uganda 10,204 6,251 1.63
2 Insurance Co. of E.A 843,048 91,842 9.18
3 E.A.Underwriters 493,666 935,841 0.52
4 National Insurance 1,806,614 24,404,794 0.07
5 United Assurance 1,144,366 2,341,301 0.49
6 Jubilee Insurance 168,531 1,915,916 0.09
Industry Total 4,466,429 29,695,945 -
Industry Average 0.15
Uganda Insurance Commission 71 2006 Annual Insurance Market Report
Insurers’ solvency margin - 2006
(Amount Ushs. ' 000) LONGTERM INSURANCE GENERAL INSURANCE BUSINESS BUSINESS
Admitted Admitted Available Required Surplus of the Solvency coverage = Admitted Admitted Available Company Assets Liabilities margin margin Available over [Available margin / Assets Liabilities Margin (Actual) (15% of Net the Required Required margin] X 100 (Actual) Premium) AIG Uganda Ltd - 1 21,402,981 10,762,590 10,640,391 1,713,110 8,927,282 621.12 Jubilee Insurance 2 10,169,138 9,188,973 980,165 796,920 183,245 122.99 2,991,424 1,629,072 1,362,352 United Assurance 3 14,351,872 11,417,952 2,933,920 1,297,574 1,636,346 226.11 2,155,589 2,074,788 80,801 National Insurance 4 11,562,912 6,484,413 5,078,499 881,288 4,197,211 576.26 29,129,586 24,798,307 4,331,279 Goldstar Insurance - 5 14,082,173 5,164,392 8,917,781 409,196 8,508,586 2,179.34 E.A.Underwriters 6 5,516,692 3,623,909 1,892,783 387,438 1,505,345 488.54 1,270,144 952,428 317,716 Excel Insurance 7 3,040,684 2,309,230 731,454 485,159 246,295 150.77 Lion Assurance 8 10,467,489 2,836,518 7,630,971 260,030 7,370,942 2,934.66 Insurance Co. of E.A 9 3,131,040 2,413,621 717,419 100,966 616,453 710.55 3,647,842 2,647,842 1,000,000 Statewide Insurance 10 7,617,903 4,356,725 3,261,178 425,945 2,835,233 765.63 First Insurance 11 3,386,629 2,295,229 1,091,400 355,931 735,469 306.63 Microcare Insurance 12 2,289,695 1,436,151 853,544 394,885 458,659 216.15 Phoenix of (U) 13 Assurance 1,813,870 1,490,555 323,315 231,949 91,366 139.39 TransAfrica Assurance 14 3,429,011 1,732,121 1,696,890 180,769 1,516,121 938.71 Leads Insurance Ltd. 15 1,651,754 1,264,822 386,932 189,906 197,026 203.75 E.A.General Insurance 16 14,485,625 804,746 13,680,879 202,281 13,478,598 6,763.29 NICO Insurance 17 1,562,784 573,545 989,239 82,754 906,485 1,195.40 Paramount Insurance 18 1,435,508 550,082 885,426 70,373 815,053 1,258.19 Rio Insurance 19 1,451,193 516,597 934,596 54,475 880,121 1,715.64
Uganda Insurance Commission 72 2006 Annual Insurance Market Report
Companies’ market share – 2006
2005 2006 2005 2006 Each company's increase Insurance Company N/Life + Life N/Life + Life premium Market share Market share in performance from 2005 premium 1 AIG Uganda 19,990,915 20,764,974 22.17 20.30 3.87 2 Jubilee Insurance 11,829,329 14,741,007 13.12 14.41 24.61 3 United Assurance 13,424,957 13,204,787 14.89 12.91 (1.64) 4 National Insurance 8,245,256 8,115,238 9.14 7.93 (1.58) 5 Goldstar Insurance 6,930,344 8,007,872 7.69 7.83 15.55 6 E.A.Underwriters 4,438,778 5,939,322 4.92 5.81 33.81 7 Excel Insurance Co. 3,388,445 4,681,681 3.76 4.58 38.17 8 Lion Assurance Co. Ltd. 1,890,428 3,913,902 2.10 3.83 107.04 9 Insurance Co. of E.A 4,487,234 3,802,953 4.98 3.72 (15.25) 10 Statewide Insurance 3,165,836 3,147,421 3.51 3.08 (0.58) 11 First Insurance 2,956,839 3,137,549 3.28 3.07 6.11 12 Microcare Insurance 479,921 2,943,135 0.53 2.88 513.25 13 Phoenix of (U) Assurance 3,037,775 2,799,612 3.37 2.74 (7.84) 14 TransAfrica Assurance 2,100,421 2,112,957 2.33 2.07 0.60 15 Leads Insurance Ltd. 1,810,614 1,817,912 2.01 1.78 0.40 16 E.A.General Insurance 821,014 1,523,873 0.91 1.49 85.61 17 NICO Insurance (U) Ltd. 386,382 751,268 0.43 0.73 94.44 18 Paramount Insurance 394,185 489,940 0.44 0.48 24.29 19 Rio Insurance 400,402 400,194 0.44 0.39 (0.05) Total 90,179,075 102,295,597 13.44
Uganda Insurance Commission 73 2006 Annual Insurance Market Report Insurance brokers’ performance – 2006
Prem.Payable Premium paid Commission Commission 2006 Income Broking firm (Total Prem (Prem. Receivable Received (Gross Generated) Collected) Commission) (Ug. Shs) (Ug. Shs) (Ug. Shs) (Ug. Shs) (Ug. Shs) 1 AON Uganda Ltd. 19,309,736,100 13,746,144,500 2,937,239,707 2,076,758,000 3,006,115,000 2 Alexander Forbes (U) Ltd. 10,120,467,242 8,527,112,679 1,758,477,735 1,521,169,608 1,758,478,000 3 Rock Insurance Services Ltd. 2,539,380,645 2,158,473,548 393,604,000 334,563,400 396,871,000 4 Interstate Insurance Services Ltd. 1,749,242,521 1,553,992,708 293,798,589 255,518,423 293,779,000 5 Five Star Insurance Services Ltd. 1,661,884,051 1,796,872,312 364,217,855 364,217,855 370,258,000 6 P.R.P Insurance services Ltd. 1,628,651,722 1,409,514,812 215,372,370 212,102,370 216,809,807 7 The Inter-Continental Ins. Brokers 1,564,857,157 1,444,575,516 251,679,482 230,818,937 259,111,288 8 Liaison Uganda Ltd. 1,355,833,000 1,281,604,000 358,719,000 335,502,000 355,719,000 9 Southern Union Ins. Brokers (U) Ltd. 993,252,673 573,882,586 234,658,805 103,298,865 234,658,805 10 Universal Galaxy Ins. Brokers Ltd 886,175,786 658,013,979 160,807,354 108,218,462 161,014,000 11 Family Insurance Services Ltd. 7 91,662,914 553,938,047 128,696,550 92,029,056 128,696,550 12 Chancery Wright Ins. Brokers (U) Ltd 734,930,017 734,930,017 131,752,967 118,102,324 126,131,711 13 Cannon Insurance Consultants Ltd. 639,367,890 494,234,836 115,041,989 102,041,989 102,041,989 14 Clarkson Notcutt Ins. Brokers (U) Ltd. 338,279,229 234,646,121 56,458,762 39,851,408 57,038,887 15 Safeway Insurance Services Ltd. 304,176,323 176,836,566 42,993,048 40,478,381 43,112,348 16 Bid Insurance (U) Ltd 273,904,062 207,156,507 36,125,108 32,933,914 36,125,108 17 Royal Insurance Consultants Ltd. 266,140,000 256,180,000 47,693,000 41,938,000 47,692,340 18 Vital Insurance Services Ltd. 229,593,283 175,436,920 46,085,814 34,286,186 46,085,814 19 Padre Pio Insurance Brokers 95,007,517 85,859,173 20,777,694 18,464,992 20,777,694 20 Globe Consults Ltd. 59,597,829 64,988,476 368,005,574 29,440,458 36,800,572 21 Oriental Insurance Brokers Ltd. 36,128,675 327,836,675 4,309,647 3,795,566 4,309,647 22 Capital Insurance Consultants Ltd. 23 Incafex Insurance Services Ltd. Total 45,578,268,636 36,462,229,978 7,966,515,050 6,095,530,194 7,701,626,560
Uganda Insurance Commission 74 2006 Annual Insurance Market Report Big claims (Ushs. 20 million plus) registered by insurance companies - 2006
Company Location Date of accident Event/Class of business Claim Amount (Shs.) LION ASSURANCE COMPANY LTD Tanzania - Arusha 4/4/2006 Fidelity Guarantee 523,307,605 " Kampala 4/11/2006 Fidelity Guarantee 30,000,000 " Gayaza - Kampala 1/2/2006 Horticulture 102,000,000 " Gayaza - Kampala 23/02/2006 Horticulture 55,590,000 " Entebbe 10/2/2006 Horticulture 24,744,000 " Entebbe 8/3/2006 Horticulture 22,118,494 " Kampala 25/07/2006 Workers Compensation 32,500,000 " Kampala 14/12/2006 Motor 24,877,760 EXCEL INSURANCE COMPANY Uganda 13/04/2006 Bonds 46,000,000 PHOENIX OF (U) ASSURANCE Mpererwe 19/01/2006 Contractors All Risks 20,000,000 " Kasese 3/3/2006 Motor 28,675,000 " Nakulamudde 31/05/2006 Motor 29,280,400 " Mombasa - Kampala 4/7/2006 Marine 49,655,645 " Bombo Road 12/7/2006 Fire 76,459,026 " Kakira 30/10/2006 Aviation 22,746,600 " Ntungamo 14/12/2006 Motor 60,500,000 STATEWIDE INSURANCE CO. LTD Kampala 4/2/2006 Workers Compensation 63,121,959 " Jinja - Kamuli 10/12/2006 Group Personal Accident 68,398,560 " Kakira 10/11/2006 Goods in Transit 35,707,042 " Gomba 31/12/2005 Motor Commercial 21,600,000 FIRST INSURANCE COMPANY Kaseese 11/12/2006 Third Party accident 30,000,000 " Nakawa 3/1/2006 Peofessional Indemnity 24,397,680 " Bweyogerere 23/09/2006 Peofessional Indemnity 36,628,500 " Arua 30/11/2006 Contractors All Risks 57,603,091 " Bankok - Kampala 5/9/2006 Marine 22,239,804 TRANSAFRICA ASSURANCE LTD Uganda - Translink Motor Accident 42,083,510 " Lugazi - SCOUL Fidelity Guarantee 35,186,107
Uganda Insurance Commission 75 2006 Annual Insurance Market Report
Company Location Date of accident Event/Class of business Claim Amount (Shs.) " Jinja - Nile Cargo Fire - Storm 47,612,000 " Lugazi - Hortech Fire - Storm 77,999,390 " Lugazi - SCOUL Fire - Storm 75,898,000 " Kampala - Jubilee Tuffoam Fire - Storm 75,959,026 EAST AFRICAN UNDERWITERS LTD Kampala 12/7/2006 Fire 71,945,369 " Kampala 10/9/2006 Fire 902,046,801 " Kotido 30/03/2006 Motor 152,846,021 " Nakapiripirit 2/7/2006 Motor 34,413,645 " Kakira 17/08/2006 Motor 57,990,000 " Kampala 22/12/2006 Motor 20,367,000 " Mbale 24/12/2005 Goods in Transit 20,133,000 " Kampala 5/3/2006 Goods in Transit 45,000,000 " Kampala 17/02/2002 Peofessional Indemnity 20,000,000 " Kampala 26/06/2006 Money 58,795,500 " Kigali (Kabuye) 28/02/2006 Marine 21,189,314 " Kampala 27/04/2006 Marine 27,484,000 " Kampala 6/7/2006 Marine 21,154,000 " Kampala 10/9/2006 Public liability 55,000,000 " Kampala 27/10/2006 Public liability 38,139,730 " Kampala 18/02/2006 Group Life 23,664,168 INSURANCE COMPANY OF E. A Kampala 1/4/2006 Motor Private 21,644,702 " Kalangala 6/1/2006 Cash in Transit 45,000,000 " Mityana 11/10/2006 Cash in Transit 160,000,000 " Nakawa 10/8/2006 Money in Transit 130,000,000 " Soroti 28/02/2006 Fidelity Guarantee 72,515,000 " Kampala 23/05/2006 Fidelity Guarantee 320,000,000 NATIONAL INSURANCE COMPANY Mbarara 26/04/2006 Fidelity Guarantee 23,160,000 " Kampala - Jinja 23/04/2006 Fidelity Guarantee 56,850,000 " Mbale 3/1/2006 Workers Compensation 58,417,000
Uganda Insurance Commission 76 2006 Annual Insurance Market Report
Company Location Date of accident Event/Class of business Claim Amount (Shs.) " Kampala 24/4/2006 Group Personal Accident 30,000,000 " Mbarara 6/3/2006 Motor Private 38,071,520 " Bushenyi 16/06/2006 Motor Private 83,230,395 " Ntungamo 12/5/2006 Motor Private 60,459,300 " Luweero 13/08/2006 Motor Private 60,283,400 " Lira 15/10/2006 Motor Private 86,154,660 " Kampala 19/09/2006 Group Life 22,500,000 " Kampala 19/10/1998 Group Life 23,095,000 " Kampala 31/7/2006 DAP 20,627,645 GOLDSTAR INSURANCE COMPANY Kampala 2/1/2006 Motor Vehicle 24,000,000 " Kampala 6/1/2006 Container Damage 36,378,498 " Kampala 18/1/2006 Motor Vehicle 63,238,118 " Kampala 17/2/06 Motor Vehicle 20,821,796 " Kampala 27/02/2006 Fire risk 50,758,354 " Kiboga 1/3/2006 Storm Damage 30,469,982 " Kampala 14/03/2006 Compressor damage 50,007,742 " Kampala 20/03/2006 Motor Vehicle 21,000,000 " Kampala 4/4/2006 Fire risk 28,500,000 " Kampala 10/4/2006 Armed robbery 81,430,200 " Kampala 8/5/2006 Motor Vehicle 37,444,000 " Kampala 2/6/2006 Motor Vehicle 50,135,944 " Kampala 26/6/2006 Personal injury 21,033,618 " Mbarara 5/7/2006 Fire risk 22,059,718 " Kampala 21/7/2006 Cash theft 24,519,472 " Kampala 14/8/2006 Consignment damage 35,086,919 " Kampala 5/9/2006 Motor Vehicle 54,210,920 " Kampala 11/9/2006 Fire risk 47,063,950 " Kampala 11/9/2006 Fire risk 48,017,530 " Kampala 28/09/2006 Motor Vehicle 72,239,714
Uganda Insurance Commission 77 2006 Annual Insurance Market Report
Company Location Date of accident Event/Class of business Claim Amount (Shs.) " Kampala 28/9/2006 Cash theft 28,500,000 " Kampala 17/10/2006 Motor Vehicle 26,640,000 " Kampala 6/11/2006 Flood damage 48,333,387 " Kampala 24/11/2006 Excavator damage 37,986,104 " Kampala 11/12/2006 Motor Vehicle 23,552,195 AIG UGANDA LIMITED Wakiso 8/10/2005 Group Personal Accident 20,297,167 " Jinja 29/3/2006 Industrial All Risks 92,500,000 " Kenya 24/8/2006 Marine 22,320,000 " Kampala 7/4/2006 Group Personal Accident 20,200,000 " Kenya 1/9/2006 Marine 20,385,178 " Kampala 5/8/2006 Auto Comprehensive 20,814,000 " Kampala 1/8/2006 Auto Comprehensive 21,267,250 " Entebbe 20/12/2006 Auto Comprehensive 21,466,741 " Kampala 2/10/2006 Auto Comprehensive 23,219,800 " Kampala 23/6/2006 Auto Comprehensive 23,296,000 " Mukono 7/5/2006 Auto Comprehensive 24,404,000 " Kampala 5/11/2006 Fire property 27,252,200 " Kampala 14/3/2006 Auto Comprehensive 28,491,000 " Kenya 1/3/2006 Marine 28,528,539 " Kampala 19/5/2006 Auto Comprehensive 34,973,200 " Kampala 6/12/2005 Auto Comprehensive 41,000,518 " Kenya 24/10/2005 Marine 43,672,261 " Kenya 28/12/2005 Auto Comprehensive 48,812,000 " Kampala 27/12/2005 Group Personal Accident 66,000,000 " Kampala 7/12/2005 Marine 67,804,200 " Kampala 30/8/2006 Marine 69,294,400 " Kampala 14/7/2006 Auto Comprehensive 72,382,000 " Kampala 24/4/2006 Boiler & machinery 141,292,387
Uganda Insurance Commission 78 2006 Annual Insurance Market Report
Company Location Date of accident Event/Class of business Claim Amount (Shs.) UNITED ASSURANCE COMPANY Kampala 13/9/2006 Fire 74,236,500 " Kampala 20/6/06 Fire 50,000,000 " Kampala 2/5/2006 Motor 34,591,600 " Kampala 28/2/06 Motor 32,175,000 " Kampala 25/5/2006 Motor 31,057,979 " Kampala 20/5/2006 Motor 29,545,000 " Kampala 17/2/2006 Goods in Transit 27,225,394 " Kampala 3/3/2006 Motor 26,442,416 " Kampala 28/2/2006 Motor 25,650,000 " Kampala 2/2/2006 Fire 22,171,997 " Kampala 22/8/2006 Motor 21,618,000 " Kampala 23/4/2006 Motor 20,184,000 " Kampala 2/8/2006 Group Personal Accident 20,000,000 " Kampala 3/2/2006 Motor 20,000,000 " Kampala 27/1/2006 Motor 20,000,000 " Kampala 9/6/2006 Motor 20,000,000 TOTAL 7,183,065,257
Uganda Insurance Commission 79 2006 Annual Insurance Market Report
LIST OF APPENDICES
Uganda Insurance Commission 80 2006 Annual Insurance Market Report
Appendix I: Organisation structure of the Commission as at 31st December 2006
COMMISSION (BOARD)
COMMISSIONER FOR INSURANCE Mr. F. F. Magezi
SECRETARY TO THE COMMISSION/ DEPUTY DEPUTY COMMISSIONER COMMISSIONER (FIN. & ADMIN) (TECHNICAL) Mrs. Evelyn Nkalubo-Muwemba Mr. G. S. Okotha
ASSISTANT COMM. ASSISTANT COMM. ASSISTANT COMM. (Finance & Investment) (Life Insurance) (Non-Life Insurance) Mr. B. D. Obel (VACANT) (VACANT)
SENIOR LEGAL OFFICER SENIOR INSPECTOR Ms. Rachel Kabala Mr. Edward K. Kasato
LEGAL OFFICER ADMIN. OFFICER INSPECTOR INSPECTOR INSPECTOR INSPECTOR RESEARCH OFFICER Ms. Audrine Mr. A.M. Mr. Peter Ssempijja Mr. Henry Mwebe Mr. Chris Mr. Edward Mr. Sewankambo Mpiso Kakuru Kananura Kiyemba Mohammed Mbodhe PERSONAL SECRETARY Ms. Annette Nakasolya
FINANCE OFFICER/ASST. INSPECTOR Mr. R. D. Opira
ACCOUNTS ASSISTANT DOCUMENTATION CLERK Mr. John S. Makoomi Ms. Florence Kobusingye Makoomi STENO/SEC/RECEPTIONIST Ms. Elizabeth Kisembo
GUARD DRIVER OFFICE ATTENDANT Mr. V. Bihezande Mr. Chris Sserwadda Mr. Geoffrey Akwanga
Uganda Insurance Commission 81 2006 Annual Insurance Market Report
Appendix II: List of licensed insurance companies as at 31st December 2006 Name of Company Name & Title of C.E.O Address Telephone/Fax & E-mail Date Incorporated Mr. Alex M. Wanjohi Plot 60, Bombo Road, Tel. 041-533781/541556/541845 1 AIG Uganda Ltd. (Managing Director) P.O. Box 7077 Fax: 541572 08/12/1970 KAMPALA Email:[email protected] 2nd Floor Muljibhai Madhvani Foundation Tel. 041-232893/4 2 East African Underwriters Ltd. Mr. Barrie Cambridge (General Building, Fax: 234221 12/05/1993 Manager) Plot 20 Jinja Road, Email:[email protected] P.O. Box 22938 KAMPALA Mr. David W. Mukasa 2nd Floor Crest House Tel. 041-348595/6/7 3 Excel Insurance Company Ltd. (Managing Director) Plot 2D Nkrumah Road Fax: 342304 06/06/1997 P.O. Box 7213 Email:[email protected] KAMPALA 2nd floor King Fahd Plaza Tel. 041-342863/233750 4 First Insurance Company Ltd. Mr. Sam Betterson Phiri Plot 52, Kampala Road 075-760117 04/05/1992 (General Manager) P.O. Box 5245 Fax: 345923 KAMPALA Email:[email protected] 6th Floor, Crane Chambers Tel. 041-250110/1/ 5 GoldStar Insurance Company Ltd. Mr. Azim Tharani Plot 38, Kampala Road 343704 23/09/1994 (Managing Director) P.O. Box 7781 Fax: 254956 KAMPALA Email:[email protected] Rwenzori Courts Tel. 041-347535/232337 6 Insurance Company of East Africa (U) Ltd. Mr. David R. Maranga Nakasero Road Fax: 347534 05/08/1999 (General Manager) P.O. Box 33953 Email:[email protected] KAMPALA Website: www.icea.co.ug Mr. Bernard Bangirana 1st Floor King Fahd Plaza Tel. 041-253283/4/5 7 Leads Insurance Ltd. (Chief Executive Officer) Plot 52, Kampala Road Fax: 253286 09/09/1999 P.O. Box 26191 Email: [email protected] KAMPALA Mr. G.T. Kihuguru (Managing 12th Floor, Crested Towers Tel. 041-341450/ 235687/8, 031-262803 8 Lion Assurance Company Ltd. Director) P.O. Box 7658 Fax: 031-262804 03/06/1988 KAMPALA Email: [email protected]
Mr. Francis Sommerwell who Plot 23, Prince Charles Drive, Kololo Tel. 041-235120/1/2/3, 236463/4 9 Microcare Insurance Ltd. replaced Mr. Dipankar Mahalanobis P.O. Box 29252 Fax: 041-236465 18/06/2004 as the Managing Director on 23rd KAMPALA Email: [email protected] June 2006, but was cofirmed on 21st September 2006.
Uganda Insurance Commission 82 2006 Annual Insurance Market Report
Mr. Bola Ososanya (Ag. Managing Plot 3 Pilkington Road Tel. 041-258001/5 10 National Insurance Corporation Ltd. Director). P.O. Box 7134 Fax: 259925 20/11/2000 KAMPALA Email:[email protected] Website: www.nic.co.ug 3rd Floor, Greenland Tours Tel. 031-264720/1/2 11 NICO Insurance (Uganda) Ltd. Mr. Eric Chopola (General Kampala Road Fax: 264723 18/10/1996 Manager) who was replaced by Mr. P.O. Box 24256 Email: [email protected] Ronald Zaake as the Managing KAMPALA Director on 1st January 2007. Plot 14, Wilson Road Mr. L.N. Kiwanuka 2nd and 4th Floors, Tel. 041-234143 12 Paramount Insurance Company Ltd. (Managing Director) Nandee Towers Fax: 234143 25/05/1993 P.O. Box 6427, KAMPALA Email : [email protected] Mr. Suresh Kumar (General 8th Floor, Workers House Pilkington Tel. 349659/349660/349662 13 Phoenix of Uganda Assurance Company Ltd. Manager) who was replaced by Mr. Road Fax: 349662 08/11/2000 V. Parthasarathi (General Manager) P.O. Box 70149 E-mail: [email protected] on 15th July 2006 KAMPALA Mr. Rogers Ddungu Kiyonga Plot 20, Kampala Road Tel. 041-341264/230469 14 Rio Insurance Company Ltd. (Managing Director) Radiant House Fax: 031-261475 P.O. Box 5710, Email : [email protected] 10/01/1990 KAMPALA Plot 1, Bombo Road, Sure House Tel. 041-345996 15 Statewide Insurance Company Ltd. Mr. J.W.M. Kiwanuka P.O. Box 9393 031-262119 12/11/1981 (Managing Director) KAMPALA Fax: 343403 Email:[email protected]
Mr. Vyasa Krishna Insurance House, 14 Kampala Road Tel. 031-262221 07/07/2003 16 The East Africa General Insurance Company Ltd. (Chief Executive Officer) P.O. Box 1392 Fax: 041-343234 KAMPALA Email: [email protected] Website: www.eagen.co.ug Jubilee Insurance Centre, Plot 14, Tel. 041-236029/344949/344938/ 17 The Jubilee Insurance Company of Uganda Ltd. Mr. Deepak Pandey (General Parliamentary Avenue, Fax: 258539 Manager) P.O. Box 10234 Email:[email protected] 23/07/1991 KAMPALA Website: www.jubileeinsurance.com Plot 13/15, Kimathi Avenue, 2nd Tel. 041-251411/340535 18 TransAfrica Assurance Company Ltd. Dr. S.K Jain Floor, Impala H’se Fax: 254511 18/08/1992 (General Manager) P.O. Box 7601 Email:[email protected] KAMPALA Mr. Mathew Koech 1 Kimathi Avenue Tel. 041-234190/1/2 19 United Assurance Company Ltd. (Managing Director) P.O. Box 7185 Fax: 256388 29/06/1971 KAMPALA Email:[email protected] Website: unitedassurance.co.ug
Uganda Insurance Commission 83 2006 Annual Insurance Market Report
Appendix III: List of licensed insurance brokers as at 31st December 2006
Name of Company Name & Title of the C. E. O Address Telephone/Fax/ E-mail Date of Incorporation Plot 3, Bandali Rise Tel. 041–220485 / 031-262851 1 Alexander Forbes (U) Ltd. Mr. Kwame Ejalu Bugoloobi Fax: 221853 27/02/1997 (Managing Director) P.O. Box 3190 Email: [email protected] KAMPALA Website: www.alexanderforbes.com Mr. Johnny Evans 20A Akii Bua Road Tel. 031-229100 2 AON Uganda Ltd. (Chief Executive Officer) who P.O. Box 3123 Fax: 031-229234 10/02/1982 was replaced by Mr. Maurice KAMPALA Email: [email protected] Amogola on 1st August 2006 Dilesh S. Bid Plot 62 Mukabya Road, Tel: 041-2287584 3 Bid Insurance Brokers (U) Ltd (Director) Banda Fax: 041-289701 07/06/2004 P.O. Box 7864 KAMPALA Digital Valley, Plot 1083 Tel. 041-270047/270057/ 274682 Mr. Wilson Lubega Kabakanjagala Rd, Mengo Mob: 077-496924 4 Cannon Insurance Consultants Ltd. (Managing Director) P.O. Box 4583 Fax: 041-274682 31/05/1989 KAMPALA Email: [email protected]
Raja Chambers, Suite 22 Tel. 041-348638/254269/231105 Mr. Patrick Kaye 3 Parliament Avenue Fax: 031-261137 19/06/1989 5 Capital Insurance Consultants Ltd. (Executive Director) who was P.O. Box 30 Email: [email protected] replaced by Mr. George N. KAMPALA Kasasa as General Manager on 1st April 2006 5th Floor, Impala House, Tel. 041-348464 6 Chancery Wright Insurance Brokers (U) Mr. John Murenga Kimathi Avenue Fax: 348341 Ltd. (Chairman and Managing P.O. Box 25672 Email: [email protected] 16/04/1998 Director) KAMPALA Website: www.chancerywright.com Suite 7, Plot 6 Airways Tel. 041-256658/235499 7 Clarkson Notcutt Ins. Brokers (U) Ltd. Anne Wanjiru Wanyoike House, Colville Street Fax: 041-256658 25/05/2004 (Country Manager) P.O. Box 2308, Email: [email protected] KAMPALA Plot 1055, Insurance Centre Tel. 041- 268296, Mr. Ronald Zaake Nsambya Hill, Gaba Road Mob: 071-202202 11/12/2001 8 Family Insurance Services Ltd. (Managing Director) who was Kabalagala Fax: 268305 replaced by Mrs. Olivia P.O Box 22546 Email: [email protected] Kisubika as the Chief KAMPALA Executive Officer on 21st December 2006
Uganda Insurance Commission 84 2006 Annual Insurance Market Report
4 Ambassordor House Tel. 041-349089/90 Mr. Aarif Karim Plot 56/60, Kampala Road Fax: 234897 20/05/1996 9 Five Star Insurance Services Ltd. (Managing Director) P.O. Box 23035 Email: [email protected] KAMPALA
Plot 3 Kimathi Avenue Tel. 041-348336 10 Globe Consult Ltd. Hon. Ibrahim Kadunabbi 4th Floor Pan Africa House Fax: 348448 Lubega P.O Box 22907 Mob: 077-592799/075-750590 13/03/2000 (Managing Director) KAMPALA Email: [email protected]
Gathani House, Plot 9, 11 Incafex Insurance Services Ltd. Mr. Jackson Karyarugookwe Bombo Road Tel. 041-251812/250008 25/02/1994 (Managing Director) P.O. Box 8867 Fax: 251812 KAMPALA Email: - Plot 4, Flat No. 1 Kimathi 12 Interstate Insurance Services Ltd. Mr. Stephen Mpagi Avenue Tel. 041-258275 (General Manager) P.O. Box 4999 Fax: 235126 30/01/1971 KAMPALA Email: [email protected] United Assurance Building, Tel. 041-223498, 0772-760383 Mr. Ben Kajwang Ground Floor, Kimathi Fax: 031-260383 08/07/1993 13 Liaison Uganda Ltd (C.E.O/Country Manager) Avenue Email: [email protected] P.O. Box 22607 Website: www.liaisongroup.net KAMPALA Plot 56/58, Ambassador Tel. 041-255906 Mr. B.E. Makoha House, 2nd Floor Suite 26, Fax: 255906 30/06/1983 14 Oriental Insurance Brokers Ltd. (Chief Executive) Kampala Road Email: [email protected] P.O. Box 619 KAMPALA Plot 59 Nkrumah Rd Tel. 041-348515, 031-270960 15 P.R.P. Insurance Services Ltd. Mr. Francis Rutabuzwa P.O. Box 24407 Fax: 255678 26/06/1997 (Executive Director) KAMPALA Email: [email protected] Irene Kego Plot 29 Buganda Road Tel: 031-2284682 16 Padre Pio Ionsurance Brokers Ltd (Chief Exedutive officer) P.O. Box 7446 Email: [email protected] 21/12/2005 KAMPALA Plot 15, Clement Hill Road Tel. 041-233339/ 031-262799 17 Rock Insurance Services Ltd. Latimer Mukasa 2nd Floor, Cotton House Fax: 031-262798 17/06/1999 (Executive Director) P.O. Box 28810 Email: [email protected] KAMPALA Plot 16, William Streeet Tel. 041-346439, 031-2272222 18 Royal Insurance Consults Ltd. Mr. William Lwanga 3rd Floor, Kalungi Plaza Fax 346439 11/09/2000 (Director/Chief Executive ) P.O Box 8206 Email: [email protected] KAMPALA
Uganda Insurance Commission 85 2006 Annual Insurance Market Report
Plot 3 Pilkington Rd Tel. 041-258255 Mr. W.B. Ddumba Kawoya 4th Floor, NIC Building Fax: 345580 19 Safeway Insurance Services Ltd. (Managing Director) P.O. Box 182 Email: [email protected] 30/06/1983 KAMPALA Plot 8 – 10, Entebbe Road 20 Southern Union Insurance Brokers (U) Ltd. Claude Mukanganwa 4th Floor Metropole House Tel: 041-349527/349345/348406 21/03/2003 (General Manager) P.O. Box 24674 Fax: 041-349385 KAMPALA Email: [email protected] Plot No. 129, Old Kiira Tel. 041-541963, 031-263577 21 The Intercontinental Insurance Brokers Ltd. Mr. Godfrey Masembe Road Fax: 541964 30/08/1982 (Executive Director) P.O. Box 8060 Email: [email protected] KAMPALA Raja Chambers Mr. Ramanlal J. Patel Ground Floor, Suite 3, Tel. 041-348132, 031-2278865 22 Universal Galaxy Insurance Brokers Ltd. (Managing Director) Parliament Avenue Fax: 232189 14/04/1992 P.O. Box 3236 Email: [email protected] KAMPALA Ambassador House Mr. A.S. Kintu Plot 56/60 Kampala Road Tel. 041- 232339 13/09/1993 23 Vital Insurance Services Ltd. (ExecutiveDirector) Suite No. 22C Mob: 077-445177 P.O. Box 792, Fax: 232339 KAMPALA Email: [email protected]
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Appendix IV: List of licensed Loss Assessors, Adjusters and Surveyors as at 31st December 2006 Name of Company Name & Title of the C.E.O Address Telephone/Fax/E-mail Date of Incorporation Damascan Plaza, Nakulabye – Hoima Rd 1 Aliwali Diamond Engineers Eng. G.W. Nnyanzi P.O. Box 8656 Tel. 077- 415507/077-457148 11/05/1988 (Chief Executive) KAMPALA Email : - Bengal Trading Company (U) Ltd Pradip Kumar Das Plot 96/98 William street Tel: 0712-983233 2 (Managing Director) P.O. Box 30319 Email: [email protected] 24/11/2003 KAMPALA Teachers’ House, Plot 28/30 Bombo Rd, 3 Crown Vehicle Inspectors & Valuers Eng. Adam M. Sebbit 2nd Floor, Room 201 Tel: 041-235930 02/07/2002 Ltd. (Managing Director) P.O. Box 14041 Mob: 077-421253 KAMPALA Khairul Islam Plot 223/226, Industrial Area Tel: 077-533833, 077-447079 4 Five Motors (U) Ltd. (Managing Director) P.O. Box 12636 Email: [email protected] 13/03/2003 KAMPALA Plot 14 Martin Road, Tel. 041- 255479/ Independent Adjusters Uganda Ltd B.N. Bhattacharya Old Kampala 077-755479 02/09/94 5 changed its name to McLarens Young (Managing Director) P.O. Box 22781 Fax: 259699 International Ltd on 12/09/2006. KAMPALA Email: [email protected] Eng. Ismail Kimuli Plot 1677, Block 244, Muyenga Tel/Fax: 041-510296/ 078-500106 6 Intertech Global Assessors Ltd. (Managing Director) P.O. Box 10076 Email: [email protected] 19/05/2005 KAMPALA Website: www.intertecheltd.com Plot 1055, Insurance Centre Tel. 041- 510070/ 301-263108 7 B. Musoke Nsambya Hill, Gaba Road 077-483705/077-436914 12/04/1999 Multiple Consult Network Ltd. (Chief Executive Officer) P.O. Box 22546 Fax: 510070 KAMPALA Email: [email protected] S. R. Katongole Pioneer House, Plot 28 Jinja Road, 1st Tel. 041- 344409, 075-269541 8 Nathwani & Taylor T/A Toplis & (Managing Director) Floor, Room 15 Fax: 344409 07/03/1997 Harding P.O. Box 11311 Email: [email protected] KAMPALA J.B Mujuzi Crown House, Kampala Road Tel. 041-258649/ 077-412844 9 Protectors International Ltd. (Managing Director) P.O. Box 12298 Fax: 258659 8/01/2002 KAMPALA Email: [email protected] M.K. Tibabuganya Pilkington Road, NIC Building Annex Tel: 077-513743, 0772513 743 Was registered on 10 Tibabiganya & Partners (Chief Executive ) P.O. Box 4848 Fax: 041-251922 31/10/1974 KAMPALA Email: [email protected] Jolly T. Ssekakoni Plot 47/49, Nkrumah Rd, U.C.A Tel. 041-342724/ 11 Uganda Loss Adjusters & Surveyors (Chief Executive) Building 075-693901 02/12/1967 Ltd. P.O. Box 1320, KAMPALA Email : -
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