2006 annual report.pdf - The Insurance Regulatory Authority ...

2006 Annual Insurance Market Report

Uganda Insurance Commission i

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 ii

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


Uganda Insurance Commission iii

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


Uganda Insurance Commission iv

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


Uganda Insurance Commission v

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)


Uganda Insurance Commission vi

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 vii

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 1

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)

Type of Operator

Number licensed

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



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.



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.



Table 2 (a): Contraventions of the Insurance Act during the year 2006

Insurance operator Nature of offence No. of 2005

offenders

No. of 2006

offenders

Insurance companies

Undercutting insurance premium

rates

- 3

Failure to submit audited accounts

on time (Section 49).

1 4

Insurance brokers Failure to submit audited accounts

on time [Section 83(1)].

17 16

Loss assessors/adjusters

etc.

Failure to submit audited accounts

on time [Section 83(2)].

9 6

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

Nature of Offence

Number per year Average

Number 2001 2002 2003 2004 2005 2006

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).



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



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.



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

settlement of claims

4 - 1 1 04

Outstanding premium - 2 2 1 02

Failure by brokers in their

responsibilities

- - - 3 04

Non-fulfillment of obligations under

the Insurance contract

17 7 19 7 06

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.



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

All loss assessors/adjusters

Annual Reports and Financial Statements

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

24/03/2006

Some insurance brokers

Statutory Instruments under section 79 (3)

of the Insurance Statute, 1996 (now, The

Insurance Act (Cap 213) Laws of Uganda,

2000)

27/03/2006

All Insurance companies

All Insurance brokers


Annual Insurance Market Report 2004

(Report)

20/04/2006


Inspection of your branch/agency offices

in Kampala, Entebbe, Mityana, Kireka and

Mukono

21/04/2006




Industrial Review Journal: Corporate

Profile Reviewing the recent trends in the

insurance sector on fast-track claims

settlement

22/05/2006 All Insurance companies

Quarterly Reconciliation Statements with

brokers: 1st Quarter - 2006


Inspection of your properties and

branch/agency offices in Eastern, Western

and Southern Uganda

2/06/2006

Some insurance brokers

Submission of Annual Reports and

Financial Statements for the year ending

31st December 2005


Field attachment of Bsc. Actuarial Science

students

6/06/2006 All Insurance companies Publication of the Balance Sheet



Date Addressed to Subject matter/Title

8/06/2006




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

3/07/2006




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

4/09/2006




Invitation to the inauguration of the fourth

Commission (Board)



Valuation of properties/assets

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


Worldwide Insurance & Financial

Services Ltd. (Worldwide)



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



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

17.57%

9,864

16.48%

14,499

19.13%

13,765

16.19%

16,746

17.35%

Marine 4,542

9.10%

5,367

8.97%

6,873

9.07%

7,151

8.41%

7,431

7.70%

Motor 16,736

33.53%

19,851

33.16%

23,964

31.62%

29,518

34.73%

30,889

32.01%

Misc. Accident 19,868

39.80%

24,781

41.40%

30,448

40.18%

34,566

40.67%

41,429

42.93%

Total 49,913

100%

59,864

100%

75,784

100%

85,001

100%

96,495

100%



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%

Marine

8%

Motor

32%

Misc.

Accident

43%



Table 9: Estimated No. of motor vehicles on the road

Year Heavy

Trucks

Pick Ups

& 4WD

Buses Mini

Buses

Cars Motor

Cycles

Agric

Tractors

Others Total %age

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



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

Individual.

6%

Life Group

72%

DAP

22%

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



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.



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)

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

Years

Pre

miu

m (

millio

n U

sh

s)

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.



Graph 2: Trend of Life gross premium by class (1996 – 2006)

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

Years

Pre

miu

m (

millio

n U

sh

s)

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



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.



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/

Aviation

Motor Misc.

Accident

Total Life

Indv.

Group

Life

DAP Total

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



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



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.



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.



Chart 3: Non-Life earned premiums Vs. Net claims incurred – 2006.

3,809

1,3032,331

516

26,304

10,542

20,556

6,202

0

5,000

10,000

15,000

20,000

25,000

30,000m

illio

n (

Us

hs

)

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.

283

28

3,132

279

1,251

1,614

0

500

1,000

1,500

2,000

2,500

3,000

3,500

millio

n (

Us

hs

)

Life Individual Life Group DAP

Categories

Net earned premium Net Incurred claims



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


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.



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.



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

(million Ushs.)

GDP at factor cost at current

prices (million Ushs.)

Premium as a %

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;



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 $).

Country

Life

Premium

Non-Life

Premium

Life & Non/Life

Premium

GDP

Penetration

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.



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

total industry premium (%)

41.98 42.66 43.61 45.56 45.56

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.



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.



3.0 INSURERS’ CONSOLIDATED BALANCE SHEETS - 2006

3.1 Non-Life business

ASSETS 2006

(Ushs. ‘000)

2005

(Ushs. ‘000)

2004

(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



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.



3.2 Life business

ASSETS 2006

(Ushs. ‘000)

2005

(Ushs. ‘000)

2004

(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



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.



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.



(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.



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.



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.



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.



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.



STATISTICS TABLES



Gross premium – 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 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



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


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



Loss ratios - 2006

Non-Life Life

Insurance Company Fire Marine/Av Motor Misc.Acc Average Life Indiv. Life

Group

DAP Average

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



Net premium –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 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


11 First Insurance 115,410 28,501 1,542,814 686,146 2,372,871






17 NICO Insurance (U) Ltd. (4,978) 20,404 296,670 239,598 551,694


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



Net earned premium –2006


Non-Life Life


Group

DAP Total

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


11 First Insurance 89,029 22,492 1,488,706 681,096 2,281,323






17 NICO Insurance (U) Ltd. 3,736 40,998 239,204 237,649 521,587


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



Net incurred claims –2006


Non-Life Life


Group

DAP Total

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


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



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



4 National Insurance 84.47 10.41 97.37 87.36 85.60 77.80 94.86 - 95.43


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


9 Insurance Co. of E.A 6.75 45.35 89.14 31.00 31.41 89.87 85.67 - 91.72


11 First Insurance 42.97 55.84 92.76 59.43 75.63





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



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



4 National Insurance 15.53 89.59 2.63 12.64 14.40 22.20 5.14 - 4.57


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


9 Insurance Co. of E.A 93.25 54.65 10.86 69.00 68.59 10.13 14.33 - 8.28


11 First Insurance 57.03 44.16 7.24 40.57 24.37





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



Expense ratio - Non-Life (2006)


InsuranceCompany Commission

(C)

Management

Expenses (ME) Total

(C + ME)

Gross

Premium

Expense Ratio =

[(C + ME)/Gross Prem]% ME/

Gross prem

Commission/

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




Expense ratio - Life (2006)


InsuranceCompany

Commission

(C)

Management

Expenses (ME) Total

(C + ME)

Gross

Premium

Expense Ratio =

[(C + ME)/Gross Prem]%

ME/

Gross prem

Commission/

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 - - -




Return on equity (%) - Non-Life (2006)

InsuranceCompany Profit/loss after tax

Shareholders' funds

Return on equity

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



Number of policies issued (New) – 2006

Non-Life Life


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



Number of policies (Renewals) – 2006

Non-Life Life


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



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



New Non-Life number of individuals covered by group policies – 2006



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


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


15 Leads Insurance Ltd. 1,295 - - - - 1,295



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



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



Non-Life number of group policies – Renewed for 2006



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


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


15 Leads Insurance Ltd. 19 - - - 19



18 Paramount Insurance Company Ltd. 1 - - - - 1

19 Rio Insurance Company Ltd. - - - - - -

Total 842 22 351 125 4 1,344



Non-Life number of individuals covered by group policies – Renewed for 2006



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


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


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



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 Co.

Insurance Insurance

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





Insurance Insurance


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





Insurance Insurance


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


Dividends payable

Claims Outstanding





Insurance Insurance


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



………………(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


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






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






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


Dividends payable 11,251 11,251

Claims Outstanding 344,959 130,343 475,302






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



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 -



………………(Life balance sheet continued)



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





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 13,929

361,289

34,423 409,641

- 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



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


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



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


6 Jubilee Insurance 168,531 1,915,916 0.09

Industry Total 4,466,429 29,695,945 -

Industry Average 0.15



Insurers’ solvency margin - 2006


Company

GENERAL INSURANCE BUSINESS

LONGTERM INSURANCE BUSINESS

Admitted Assets

Admitted Liabilities

Available margin (Actual)

Required margin

(15% of Net Premium)

Surplus of the Available over the Required

Solvency coverage = [Available margin /

Required margin] X 100

Admitted Assets

Admitted Liabilities

Available Margin (Actual)

1

AIG Uganda Ltd 21,402,981

10,762,590

10,640,391

1,713,110

8,927,282

621.12

-

2 Jubilee Insurance

10,169,138 9,188,973

980,165

796,920

183,245

122.99

2,991,424

1,629,072

1,362,352

3

United Assurance 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

4

National Insurance 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

5

Goldstar Insurance 14,082,173

5,164,392

8,917,781

409,196

8,508,586

2,179.34

-

6

E.A.Underwriters 5,516,692

3,623,909

1,892,783

387,438

1,505,345

488.54

1,270,144

952,428

317,716

7

Excel Insurance 3,040,684

2,309,230

731,454

485,159

246,295

150.77

8

Lion Assurance 10,467,489

2,836,518

7,630,971

260,030

7,370,942

2,934.66

9

Insurance Co. of E.A 3,131,040

2,413,621

717,419

100,966

616,453

710.55

3,647,842

2,647,842

1,000,000

10

Statewide Insurance 7,617,903

4,356,725

3,261,178

425,945

2,835,233

765.63

11

First Insurance 3,386,629

2,295,229

1,091,400

355,931

735,469

306.63

12

Microcare Insurance 2,289,695

1,436,151

853,544

394,885

458,659

216.15

13

Phoenix of (U) Assurance

1,813,870

1,490,555

323,315

231,949

91,366

139.39

14

TransAfrica Assurance 3,429,011

1,732,121

1,696,890

180,769

1,516,121

938.71

15

Leads Insurance Ltd. 1,651,754

1,264,822

386,932

189,906

197,026

203.75

16

E.A.General Insurance 14,485,625

804,746

13,680,879

202,281

13,478,598

6,763.29

17

NICO Insurance 1,562,784

573,545

989,239

82,754

906,485

1,195.40

18

Paramount Insurance 1,435,508

550,082

885,426

70,373

815,053

1,258.19

19

Rio Insurance 1,451,193

516,597

934,596

54,475

880,121

1,715.64



Companies’ market share – 2006

Insurance Company

2005

N/Life + Life

premium

2006

N/Life + Life premium

2005

Market share

2006

Market share

Each company's increase

in performance from 2005

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



Insurance brokers’ performance – 2006

Prem.Payable Premium paid Commission Commission 2006 Income

Broking firm (Total Prem Generated)

(Prem. Collected)

Receivable Received (Gross 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



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




" 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




" 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 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 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 10/4/2006 Armed robbery 81,430,200



" 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 28/9/2006 Cash theft 28,500,000


" Kampala 6/11/2006 Flood damage 48,333,387

" Kampala 24/11/2006 Excavator damage 37,986,104


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


" Kenya 1/9/2006 Marine 20,385,178

" Kampala 5/8/2006 Auto Comprehensive 20,814,000


" Entebbe 20/12/2006 Auto Comprehensive 21,466,741



" Mukono 7/5/2006 Auto Comprehensive 24,404,000

" Kampala 5/11/2006 Fire property 27,252,200


" Kenya 1/3/2006 Marine 28,528,539



" Kenya 24/10/2005 Marine 43,672,261

" Kenya 28/12/2005 Auto Comprehensive 48,812,000


" Kampala 7/12/2005 Marine 67,804,200

" Kampala 30/8/2006 Marine 69,294,400


" Kampala 24/4/2006 Boiler & machinery 141,292,387




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 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



LIST OF APPENDICES



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 COMMISSIONER (FIN. & ADMIN)

Mrs. Evelyn Nkalubo-Muwemba

ASSISTANT COMM. (Finance & Investment)

Mr. B. D. Obel

ASSISTANT COMM.

(Non-Life Insurance) (VACANT)

ASSISTANT COMM. (Life Insurance)

(VACANT)

SENIOR INSPECTOR

Mr. Edward K. Kasato

INSPECTOR Mr. A.M.

Sewankambo

RESEARCH OFFICER Mr. Peter Ssempijja

Mpiso

LEGAL OFFICER

Mr. Henry Mwebe

ADMIN. OFFICER Ms. Audrine

Kakuru

ACCOUNTS ASSISTANT

Mr. John S. Makoomi

INSPECTOR

Mr. Chris

Kananura

PERSONAL SECRETARY

Ms. Annette Nakasolya

DEPUTY COMMISSIONER (TECHNICAL)

Mr. G. S. Okotha

GUARD Mr. V. Bihezande

DRIVER Mr. Chris Sserwadda

OFFICE ATTENDANT Mr. Geoffrey Akwanga

FINANCE OFFICER/ASST. INSPECTOR

Mr. R. D. Opira

SENIOR LEGAL OFFICER

Ms. Rachel Kabala

STENO/SEC/RECEPTIONIST

Ms. Elizabeth Kisembo

DOCUMENTATION CLERK Ms. Florence Kobusingye

Makoomi

INSPECTOR

Mr. Edward

Kiyemba

INSPECTOR

Mr. Mohammed

Mbodhe



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

1

AIG Uganda Ltd.

Mr. Alex M. Wanjohi

(Managing Director)

Plot 60, Bombo Road,

P.O. Box 7077 KAMPALA

Tel. 041-533781/541556/541845

Fax: 541572

Email:[email protected]

08/12/1970

2

East African Underwriters Ltd.

Mr. Barrie Cambridge (General

Manager)

2nd Floor

Muljibhai Madhvani Foundation

Building,

Plot 20 Jinja Road,

P.O. Box 22938

KAMPALA

Tel. 041-232893/4

Fax: 234221


12/05/1993

3

Excel Insurance Company Ltd.

Mr. David W. Mukasa

(Managing Director)

2nd Floor Crest House

Plot 2D Nkrumah Road


Tel. 041-348595/6/7

Fax: 342304


06/06/1997

4

First Insurance Company Ltd.

Mr. Sam Betterson Phiri

(General Manager)

2nd floor King Fahd Plaza

Plot 52, Kampala Road


Tel. 041-342863/233750

075-760117

Fax: 345923


04/05/1992

5

GoldStar Insurance Company Ltd.

Mr. Azim Tharani

(Managing Director)

6th Floor, Crane Chambers


P.O. Box 7781

KAMPALA

Tel. 041-250110/1/

343704

Fax: 254956


23/09/1994

6

Insurance Company of East Africa (U) Ltd.

Mr. David R. Maranga

(General Manager)

Rwenzori Courts

Nakasero Road


Tel. 041-347535/232337

Fax: 347534


Website: www.icea.co.ug

05/08/1999

7

Leads Insurance Ltd.

Mr. Bernard Bangirana

(Chief Executive Officer)

1st Floor King Fahd Plaza


P.O. Box 26191

KAMPALA

Tel. 041-253283/4/5

Fax: 253286

Email: [email protected]

09/09/1999

8

Lion Assurance Company Ltd.

Mr. G.T. Kihuguru (Managing

Director)

12th Floor, Crested Towers

P.O. Box 7658

KAMPALA

Tel. 041-341450/ 235687/8, 031-262803

Fax: 031-262804 Email: [email protected]

03/06/1988

9

Microcare Insurance Ltd.

Mr. Francis Sommerwell who replaced Mr. Dipankar Mahalanobis

as the Managing Director on 23rd

June 2006, but was cofirmed on 21st September 2006.

Plot 23, Prince Charles Drive, Kololo P.O. Box 29252

KAMPALA

Tel. 041-235120/1/2/3, 236463/4 Fax: 041-236465


18/06/2004

mailto:[email protected]






http://www.icea.co.ug/






10

National Insurance Corporation Ltd.

Mr. Bola Ososanya (Ag. Managing Director).

Plot 3 Pilkington Road P.O. Box 7134

KAMPALA

Tel. 041-258001/5 Fax: 259925


Website: www.nic.co.ug

20/11/2000

11

NICO Insurance (Uganda) Ltd.

Mr. Eric Chopola (General

Manager) who was replaced by Mr.

Ronald Zaake as the Managing Director on 1st January 2007.

3rd Floor, Greenland Tours

Kampala Road


Tel. 031-264720/1/2

Fax: 264723


18/10/1996

12

Paramount Insurance Company Ltd.

Mr. L.N. Kiwanuka (Managing Director)

Plot 14, Wilson Road

2nd and 4th Floors, Nandee Towers

P.O. Box 6427, KAMPALA

Tel. 041-234143 Fax: 234143

Email : [email protected]

25/05/1993

13

Phoenix of Uganda Assurance Company Ltd.

Mr. Suresh Kumar (General Manager) who was replaced by Mr.

V. Parthasarathi (General Manager)

on 15th July 2006

8th Floor, Workers House Pilkington Road

P.O. Box 70149

KAMPALA

Tel. 349659/349660/349662 Fax: 349662

E-mail: [email protected]

08/11/2000

14

Rio Insurance Company Ltd.

Mr. Rogers Ddungu Kiyonga

(Managing Director)


Radiant House

P.O. Box 5710,

KAMPALA

Tel. 041-341264/230469

Fax: 031-261475

Email : [email protected]

10/01/1990

15

Statewide Insurance Company Ltd.

Mr. J.W.M. Kiwanuka

(Managing Director)

Plot 1, Bombo Road, Sure House


Tel. 041-345996

031-262119

Fax: 343403


12/11/1981

16

The East Africa General Insurance Company Ltd.

Mr. Vyasa Krishna


Insurance House, 14 Kampala Road

P.O. Box 1392

KAMPALA

Tel. 031-262221

Fax: 041-343234


Website: www.eagen.co.ug

07/07/2003

17

The Jubilee Insurance Company of Uganda Ltd.

Mr. Deepak Pandey (General

Manager)

Jubilee Insurance Centre, Plot 14,

Parliamentary Avenue,


Tel. 041-236029/344949/344938/

Fax: 258539


Website: www.jubileeinsurance.com

23/07/1991

18

TransAfrica Assurance Company Ltd.

Dr. S.K Jain

(General Manager)

Plot 13/15, Kimathi Avenue, 2nd

Floor, Impala H’se

P.O. Box 7601

KAMPALA

Tel. 041-251411/340535

Fax: 254511


18/08/1992

19

United Assurance Company Ltd.

Mr. Mathew Koech

(Managing Director)

1 Kimathi Avenue


Tel. 041-234190/1/2

Fax: 256388


Website: unitedassurance.co.ug

29/06/1971


http://www.nic.co.ug/







http://www.eagen.co.ug/


http://www.jubileeinsurance.com/






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

1

Alexander Forbes (U) Ltd.

Mr. Kwame Ejalu

(Managing Director)

Plot 3, Bandali Rise

Bugoloobi

P.O. Box 3190

KAMPALA

Tel. 041–220485 / 031-262851

Fax: 221853


Website: www.alexanderforbes.com

27/02/1997

2

AON Uganda Ltd.

Mr. Johnny Evans

(Chief Executive Officer) who

was replaced by Mr. Maurice

Amogola on 1st August 2006

20A Akii Bua Road

P.O. Box 3123

KAMPALA

Tel. 031-229100

Fax: 031-229234


10/02/1982

3

Bid Insurance Brokers (U) Ltd

Dilesh S. Bid

(Director)

Plot 62 Mukabya Road,

Banda

P.O. Box 7864

KAMPALA

Tel: 041-2287584

Fax: 041-289701

07/06/2004

4

Cannon Insurance Consultants Ltd.

Mr. Wilson Lubega

(Managing Director)

Digital Valley, Plot 1083

Kabakanjagala Rd, Mengo

P.O. Box 4583

KAMPALA

Tel. 041-270047/270057/ 274682

Mob: 077-496924

Fax: 041-274682


31/05/1989

5

Capital Insurance Consultants Ltd.

Mr. Patrick Kaye

(Executive Director) who was

replaced by Mr. George N.

Kasasa as General Manager on

1st April 2006

Raja Chambers, Suite 22

3 Parliament Avenue

P.O. Box 30

KAMPALA

Tel. 041-348638/254269/231105

Fax: 031-261137


19/06/1989

6

Chancery Wright Insurance Brokers (U)

Ltd.

Mr. John Murenga

(Chairman and Managing

Director)

5th Floor, Impala House,

Kimathi Avenue

P.O. Box 25672

KAMPALA

Tel. 041-348464

Fax: 348341


Website: www.chancerywright.com

16/04/1998

7

Clarkson Notcutt Ins. Brokers (U) Ltd.

Anne Wanjiru Wanyoike

(Country Manager)

Suite 7, Plot 6 Airways

House, Colville Street

P.O. Box 2308,

KAMPALA

Tel. 041-256658/235499

Fax: 041-256658


25/05/2004

8

Family Insurance Services Ltd.

Mr. Ronald Zaake

(Managing Director) who was

replaced by Mrs. Olivia

Kisubika as the Chief

Executive Officer on 21st

December 2006

Plot 1055, Insurance Centre

Nsambya Hill, Gaba Road

Kabalagala

P.O Box 22546

KAMPALA

Tel. 041- 268296,

Mob: 071-202202

Fax: 268305


11/12/2001


http://www.alexanderforbes.com/



mailto:%[email protected]


http://www.chancerywright.com/





9

Five Star Insurance Services Ltd.

Mr. Aarif Karim

(Managing Director)

4 Ambassordor House

Plot 56/60, Kampala Road

P.O. Box 23035

KAMPALA

Tel. 041-349089/90

Fax: 234897


20/05/1996

10

Globe Consult Ltd.

Hon. Ibrahim Kadunabbi

Lubega

(Managing Director)

Plot 3 Kimathi Avenue

4th Floor Pan Africa House

P.O Box 22907

KAMPALA

Tel. 041-348336

Fax: 348448

Mob: 077-592799/075-750590


13/03/2000

11

Incafex Insurance Services Ltd.

Mr. Jackson Karyarugookwe

(Managing Director)

Gathani House, Plot 9,

Bombo Road

P.O. Box 8867

KAMPALA

Tel. 041-251812/250008

Fax: 251812

Email: -

25/02/1994

12

Interstate Insurance Services Ltd.

Mr. Stephen Mpagi

(General Manager)

Plot 4, Flat No. 1 Kimathi

Avenue

P.O. Box 4999

KAMPALA

Tel. 041-258275

Fax: 235126


30/01/1971

13

Liaison Uganda Ltd

Mr. Ben Kajwang

(C.E.O/Country Manager)

United Assurance Building,

Ground Floor, Kimathi

Avenue

P.O. Box 22607

KAMPALA

Tel. 041-223498, 0772-760383

Fax: 031-260383


Website: www.liaisongroup.net

08/07/1993

14

Oriental Insurance Brokers Ltd.

Mr. B.E. Makoha

(Chief Executive)

Plot 56/58, Ambassador

House, 2nd Floor Suite 26,

Kampala Road

P.O. Box 619

KAMPALA

Tel. 041-255906

Fax: 255906


30/06/1983

15

P.R.P. Insurance Services Ltd.

Mr. Francis Rutabuzwa

(Executive Director)

Plot 59 Nkrumah Rd

P.O. Box 24407

KAMPALA

Tel. 041-348515, 031-270960

Fax: 255678


26/06/1997

16

Padre Pio Ionsurance Brokers Ltd

Irene Kego

(Chief Exedutive officer)

Plot 29 Buganda Road

P.O. Box 7446

KAMPALA

Tel: 031-2284682


21/12/2005

17

Rock Insurance Services Ltd.

Latimer Mukasa


Plot 15, Clement Hill Road

2nd Floor, Cotton House

P.O. Box 28810

KAMPALA

Tel. 041-233339/ 031-262799

Fax: 031-262798


17/06/1999

18

Royal Insurance Consults Ltd.

Mr. William Lwanga

(Director/Chief Executive )

Plot 16, William Streeet

3rd Floor, Kalungi Plaza

P.O Box 8206

KAMPALA

Tel. 041-346439, 031-2272222

Fax 346439


11/09/2000





http://www.liaisongroup.net/








19

Safeway Insurance Services Ltd.

Mr. W.B. Ddumba Kawoya

(Managing Director)

Plot 3 Pilkington Rd

4th Floor, NIC Building

P.O. Box 182

KAMPALA

Tel. 041-258255

Fax: 345580


30/06/1983

20

Southern Union Insurance Brokers (U) Ltd.

Claude Mukanganwa

(General Manager)

Plot 8 – 10, Entebbe Road

4th Floor Metropole House

P.O. Box 24674

KAMPALA

Tel: 041-349527/349345/348406

Fax: 041-349385


21/03/2003

21

The Intercontinental Insurance Brokers Ltd.

Mr. Godfrey Masembe


Plot No. 129, Old Kiira

Road

P.O. Box 8060

KAMPALA

Tel. 041-541963, 031-263577

Fax: 541964


30/08/1982

22

Universal Galaxy Insurance Brokers Ltd.

Mr. Ramanlal J. Patel

(Managing Director)

Raja Chambers

Ground Floor, Suite 3,

Parliament Avenue

P.O. Box 3236

KAMPALA

Tel. 041-348132, 031-2278865

Fax: 232189


14/04/1992

23

Vital Insurance Services Ltd.

Mr. A.S. Kintu

(ExecutiveDirector)

Ambassador House

Plot 56/60 Kampala Road

Suite No. 22C

P.O. Box 792,

KAMPALA

Tel. 041- 232339

Mob: 077-445177

Fax: 232339


13/09/1993








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

1

Aliwali Diamond Engineers

Eng. G.W. Nnyanzi

(Chief Executive)

Damascan Plaza, Nakulabye – Hoima Rd

P.O. Box 8656

KAMPALA

Tel. 077- 415507/077-457148

Email : -

11/05/1988

2

Bengal Trading Company (U) Ltd Pradip Kumar Das

(Managing Director)

Plot 96/98 William street

P.O. Box 30319

KAMPALA

Tel: 0712-983233


24/11/2003

3

Crown Vehicle Inspectors & Valuers

Ltd.

Eng. Adam M. Sebbit

(Managing Director)

Teachers’ House, Plot 28/30 Bombo Rd,

2nd Floor, Room 201

P.O. Box 14041

KAMPALA

Tel: 041-235930

Mob: 077-421253

02/07/2002

4

Five Motors (U) Ltd.

Khairul Islam

(Managing Director)

Plot 223/226, Industrial Area

P.O. Box 12636

KAMPALA

Tel: 077-533833, 077-447079


13/03/2003

5

Independent Adjusters Uganda Ltd

changed its name to McLarens Young

International Ltd on 12/09/2006.

B.N. Bhattacharya

(Managing Director)

Plot 14 Martin Road,

Old Kampala

P.O. Box 22781

KAMPALA

Tel. 041- 255479/

077-755479

Fax: 259699


02/09/94

6

Intertech Global Assessors Ltd.

Eng. Ismail Kimuli

(Managing Director)

Plot 1677, Block 244, Muyenga

P.O. Box 10076

KAMPALA

Tel/Fax: 041-510296/ 078-500106


Website: www.intertecheltd.com

19/05/2005

7

Multiple Consult Network Ltd.

B. Musoke


Plot 1055, Insurance Centre

Nsambya Hill, Gaba Road

P.O. Box 22546

KAMPALA

Tel. 041- 510070/ 301-263108

077-483705/077-436914

Fax: 510070


12/04/1999

8

Nathwani & Taylor T/A Toplis &

Harding

S. R. Katongole

(Managing Director)

Pioneer House, Plot 28 Jinja Road, 1st

Floor, Room 15

P.O. Box 11311

KAMPALA

Tel. 041- 344409, 075-269541

Fax: 344409


07/03/1997

9

Protectors International Ltd.

J.B Mujuzi

(Managing Director)

Crown House, Kampala Road

P.O. Box 12298

KAMPALA

Tel. 041-258649/ 077-412844

Fax: 258659


8/01/2002

10

Tibabiganya & Partners

M.K. Tibabuganya

(Chief Executive )

Pilkington Road, NIC Building Annex

P.O. Box 4848

KAMPALA

Tel: 077-513743, 0772513 743

Fax: 041-251922


Was registered on

31/10/1974

11

Uganda Loss Adjusters & Surveyors

Ltd.

Jolly T. Ssekakoni

(Chief Executive)

Plot 47/49, Nkrumah Rd, U.C.A

Building

P.O. Box 1320, KAMPALA

Tel. 041-342724/

075-693901

Email : -

02/12/1967





http://www.intertecheltd.com/





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