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The Kenyan firm also has operations in Zambia and Cote d’Ivoire
Kampala, Uganda | THE INDEPENDENT | Kenya’s state-owned Kenya Reinsurance Corporation popularly known as Kenya Re has unveiled its subsidiary in Kampala, becoming the second reinsurer to have a physical presence in the country besides Uganda Reinsurance Corporation.
Kenya Re, which also has two other subsidiaries in Zambia and Cote d’Ivoire hopes to not only strengthen its footprint in Uganda but also reinforce its commitment to providing unparalleled services in East, West, Southern, and Central Africa.
“Our presence in Uganda serves a vital purpose of bridging the gap of missing reinsurance services domestically. We want to partner with local insurance companies to reduce the reliance on international reinsurance which often comes at a higher cost,” said the company’s Managing Director, Hillary Wachinga.
“By reinforcing our local presence, our goal is to foster self-sufficiency in the reinsurance sector and contribute to Uganda’s economic growth by retaining value within the country.”
Wachinga said Uganda’s vibrant economy and dynamic insurance sector was an attractive suitor for Kenya Re’s business to flourish as the market experienced significant growth over the years owing to an increasing middle class, increased public awareness, and infrastructure development.
Data from the Insurance Regulatory Authority of Uganda shows that the industry recorded a 19% growth in gross written premiums to Shs 1.32 trillion. However, insurance penetration remains less than 1%, one of the lowest in the East African region.
Kenya Re was granted a licence to set up a subsidiary in Uganda in 2019 but started transacting business in 2020. The subsidiary will deal in both the company’s general and life insurance business in line with its strategic objectives within Uganda where general insurance accounts for more than 60% of the market with life insurance accounting for close to 34% of the market.
Kenya Re Uganda Board Chairperson, George Okotha said the company’s decision to open an office in Kampala has come at the right time as the company records growth in profit.
He said Kenya Re Uganda’s subsidiary recorded Shs 2.22billion in Profit After Tax last year as its assets increased from Shs 17billion in 2020 to Shs36billion in 2022. Meanwhile, the company’s gross written premiums increased from Shs6billion to Shs 13.9billion.
IRA Chief Executive Officer Ibrahim Kaddunabi Lubega welcomed Kenya Re into the Ugandan market saying, it will boost the growth of the country’s insurance market.
He said there is no reason for insurers to seek reinsurance services abroad now that the country has strong reinsurance firms.
Other reinsurance companies operating in Uganda through liaison offices include ZEP Re, PTA Re and Swiss Re.
Kenya Re profits surges
Last year, Kenya Re recorded a 15% growth in Profit after Tax to Kshs 3.62B for the year ended 31 December 2022 citing continued improvement in the reinsurance portfolio, enhanced customer-centricity, and intensified market engagements to improve visibility.
Other factors that contributed to the performance include diversification of the portfolios and markets, speedy processing of fully supported claims, inculcating of positive culture to support service delivery, enhanced partnership with cedants and intermediaries, and market development and segmentation.
The corporation’s gross written premiums grew by 23% to Kshs 24.98billion while net earned premiums grew by 16% to Kshs22.15billion.
Total revenues went up 15% to Kshs 26.68billion, supported by growth in investment income and gross premiums written.
