Exits, mergers reshape Uganda’s insurance industry

Uganda’s insurance sector is undergoing major changes, with several companies exiting the market, others merging, and new acquisitions reshaping the industry.

At least five insurers have left the market in the last five years. Rio Insurance Uganda was delicensed in September 2022, following earlier exits by AIG, Lion Insurance Company, and NOVA. In 2022, Metropolitan Life and Catherine’s Medicare also closed, while International Air Ambulance (IAA) transferred its business to Prudential Assurance Uganda.

The Insurance Regulatory Authority (IRA) has also suspended some operators and barred firms such as Uganda Global Survey Limited and Futures Properties Consultants from renewing their licenses.

IRA Chief Executive Officer, Kaddunabbi Ibrahim Lubega, said the changes are part of efforts to strengthen the sector.

“Mergers are not a concern in themselves; what matters most is the strength and stability of the industry,” he said. “We must assure policyholders that their risks will be underwritten and that compensation will be delivered without failure.”

In April, Jubilee Holdings merged its life and health insurance subsidiaries in Uganda under the new name Jubilee Life Insurance Company of Uganda Limited. The move aimed at meeting new minimum capital requirements.

Last week, Jubilee also approved the sale of its stakes in general insurance businesses in Uganda, Kenya, Tanzania, Mauritius, and Burundi to Sanlam Allianz Africa Proprietary Limited (SAZ). The deal is valued at UGX 122.4 billion (KES 4.5 billion) and is awaiting regulatory approval.

Kaddunabbi said mergers and acquisitions are healthy for the market because they help retain premiums in the country and build a stronger industry.

“Insurance is not for the faint-hearted. If a company is not ready to withstand the pressure, it can quit. Our role is to ensure such exits do not disrupt the industry,” he said.