The Kenya Reinsurance Corporation (Kenya Re) has launched its offices in Uganda in a bid to reinforce its presence in the local market.
Speaking at the opening event, Kenya Re’s Group Managing Director Dr Hillary M. Wachinga termed the opening a strategic move that not only strengthens their Uganda footprint butalso reinforces their commitment to providing unparalleled services in the East, West, Southern and Central African regions.
“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. 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,” said Dr. Wachinga.
He added that Uganda’s vibrant economy and dynamic insurance sector was an attractive suitor for Kenya Re’s business to flourish as the market has experienced significant growth in recent years, fuelled by a rising middle class, increased infrastructure development, and a growing awareness of the importance of risk management.
According to the Insurance Regulatory Authority in Uganda, the sector recorded a 19.23%growth in 2022 compared to 10.6% in 2021. The gross written premiums grew fromUSH1.11 trillion in 2021 to USH1.32 trillion in 2022.
Kenya Re launched the subsidiary in 2019 but started transacting officially in January 2020. The office is responsible for managing and growing the Corporation’s General &Life reinsurance business in line with its strategic objectives within Uganda, where General Insurance accounts for over 60% of the market with Life Insurance accounting for close to 34% of the market.
Speaking at the event, Kenya Re Uganda’s Board chairman Mr. George Steven Okotha welcomed the development saying that the business had realised growth in gross reinsurance premiums fromUSH6 billion in 2020 compared to USH13.9 billion reported in 2021 and USH 16.3billion in 2022. Profit after tax stood at USH2.33 billion in 2022 while total assets increased from USH17 billion in 2020 to Ush36 billion in 2022.
“Before we set up an office here, we analysed the market to determine what clients want. We noted that they consider price, ability and willingness to pay claims, underwriting expertise, speed of service delivery, flexibility, innovation and credit quality/rating. These factors guide how Kenya Re Uganda Limited runs business and they form part of our unique selling points,” he said.
