The Africa Reinsurance Corporation (Africa Re) has committed to support and grow the local insurance sector in Uganda.
Speaking at the 46th Annual Meeting of the General Assembly of Africa Re, held in Kampala, the Chairman of the Board of Directors, Dr. Mohamed Ahmed MAAIT, highlighted the Corporation’s plans.
He noted that with ongoing investments in Uganda’s oil and gas sector, Africa Re will leverage its technical expertise and significant experience, including managing the African Oil and Energy Pool.
“We strongly believe in Uganda’s prospects and remain committed to supporting the local insurance market to reach its highest potential in the short, medium, and long term,” he said.
He emphasized that supporting the Ugandan market is crucial to the organization’s success.
This year, Africa Re proposed a dividend of US$10.0 per share, rewarding shareholders and the Ugandan Government for their confidence in the leading pan-African reinsurer.
“2023 was a remarkable year for the Corporation, crossing the milestone of US$1 billion in turnover with US$1.106 billion in gross written premiums, reflecting a 16.25% growth over the US$951.79 million achieved in 2022. This has helped the Corporation achieve a record net income of US$126.95 million from its underwriting and investment activities,” Dr. MAAIT added.
Africa Re has played a significant role in developing Uganda’s underwriting capacity for complex risks, particularly in the nascent oil and gas sector. Additionally, the Corporation is enhancing the technical capacity of the market through training programs for young and experienced professionals in both life and non-life business segments.
Nearly 200 Ugandans have enrolled in Africa Re’s market-leading Young Insurance Professionals Programme (YIPP) across six cohorts, which will be instrumental in developing the local insurance industry in the coming years.
Africa Re is the leading pan-African reinsurance company and the largest reinsurer in Africa in terms of net reinsurance written premiums.
Established in 1976 by 36 African states following a recommendation from the African Development Bank (AfDB), Africa Re aims to develop the insurance and reinsurance industry in Africa through increased underwriting and retention capacities, supporting the continent’s economic development.
Currently, Africa Re has a broad-based shareholding structure comprising 42 African member states (34.63%), the African Development Bank (8.38%), 114 African insurance and reinsurance companies (34.94%), and three non-regional shareholders (23.05%), including leading global insurers and reinsurers from France (AXA), Canada (FAIRFAX), and Germany (ALLIANZ SE).
Representing the Prime Minister, the Minister for Security, Jim Muhwezi, praised Africa Re’s role in promoting economic stability, resilience, and growth within Africa’s insurance sectors.
“Our collective efforts have facilitated risk management and capacity building, fostering collaboration and partnerships among industry stakeholders to address the unique challenges and opportunities facing our region,” Muhwezi noted.
He emphasized the importance of dedication to excellence, innovation, and sustainability amid evolving risks, technological advancements, and market dynamics.
“We must embrace change as an opportunity to enhance our capabilities, expand our reach, and deliver greater value to our clients and shareholders. Collaboration remains key to success by working together, sharing knowledge, and leveraging our collective expertise,” he said.
Al-Hajji Kaddunabi Lubega, Chief Executive Officer of the Uganda Insurance Authority, underscored the significance of Africa Re in East Africa and Uganda specifically. He noted that in case of challenges, Africa Re’s support can sustain the insurance business within the country.
“We have seen that about 200 young Ugandans are being trained. This means many Ugandans are being prepared to take on roles in insurance, which is beneficial for the sector’s future,” he said.
He also noted Uganda’s contribution to the sector on the continent as a reason for hosting the 46th AGM.
“Premiums have increased by about 350% over the last four to five years. The Nairobi office has continued to be the most profitable office for Africa Re, highlighting the importance of Uganda and other East African countries to Africa Re’s operations,” he said.