Uganda Re to Present Cowl for the East African Crude Oil Pipeline – InsuranceNewsNet

What have been the highlights of Uganda Re’s efficiency for 2021?

2021 was a really robust yr primarily ensuing from the damaging results of the covid-19 pandemic disruptions to the economic system and our insurance coverage business and Uganda Re weren’t spared within the course of.

However, we nonetheless managed to submit some progress on our Gross Written Premium, progress of our funding revenue, achieved a revenue earlier than tax of UGX7.256Bn and after tax of UGX5.5Bn although this outcome was a drop in comparison with what was achieved in 2020.

The shareholders fund additionally grew by 13.5% from Shs 40.7Bn as of thirty first December 2020 to Shs 46.2Bn in 2021.

I must also point out that we take part within the FiRe Awards yearly and we emerged 1st Runners Up which was an enchancment from 2nd Runners Up in 2020.

What are the explanations behind this efficiency?

This was primarily because of our proactiveness and prudence, elevated belief in Uganda Re by our enterprise companions, steady monitoring and administration of our bills. The drop in efficiency was primarily attributed to the pandemic disruptions and spike in claims and the necessity for added reserves.

What are the explanations for the low efficiency of life insurance coverage enterprise in comparison with the non-life enterprise section? What are you doing to reinforce progress of the life enterprise?

Certainly our life enterprise did not carry out properly as we’d have wished. This was primarily because of the enhance in claims in comparison with earlier years. Coupled with this, we needed to enhance our reserves to cushion ourselves in opposition to future anticipated claims. We additionally have to adjust to the brand new IRA reserving technique which meant that we offer for extra reserves in comparison with earlier years.

To enhance the life enterprise efficiency, we’re reviewing the present phrases to make sure the premiums charged are commensurate to the chance publicity and this we’re doing collectively as an business. We’re additionally partaking our retrocessionaires for added capability to reinforce our retentions but in addition cushion us in case of claims.

Ought to shareholders count on dividends for final yr’s monetary efficiency?

Our goal is to make sure that a dividend is proposed and declared to our shareholders yr on yr for the reason that first declaration in 2018 and this we managed to realize in 2021 as properly since our efficiency was worthwhile regardless of the challenges we had.

What’s your evaluation of alternatives for the nation’s reinsurance business?

The alternatives are within the areas of Oil & Fuel the place there are enormous values of the tasks to be undertaken and which might positively require reinsurance help. The opposite is in Marine insurance coverage. Agriculture insurance coverage has additionally gained traction through the years creating further reinsurance alternatives for the chance publicity exceeding that of the cedants.

Globally, re-insurers have been asserting that they will not present reinsurance cowl for the deliberate East African Crude Oil Pipeline Mission. What’s the place of Uganda Re on taking up the EACOP’s re-insurance dangers?

Sure, a number of worldwide entities have made the announcement however as Uganda Re we will present the required reinsurance help and the rationale for it’s because we’re assured the Oil firms have glad the Petroleum Authority of Uganda and different authorities businesses so far as the Environmental Impression Evaluation is anxious and this is among the causes they got a go-ahead to proceed with the deliberate actions. Secondly, the federal government was additionally conscious of the impression the oil & gasoline actions must your complete eco-system and so they have put in place mechanisms to make sure that there is no such thing as a disturbance to the identical as oil firms go about their enterprise and they are going to be intently monitored to make sure that is strictly complied with.

How is Uganda Re positioned to tackle new re-insurance gamers equivalent to Kenya Re on the Ugandan market?

New reinsurers available in the market are certainly competitors for Uganda Re as they faucet into our market share. Having mentioned that, we really cooperate versus cut-throat competitors in that we help each other as reinsurers and ensure that we work intently collectively as reinsurers for the mutual advantage of our organizations.

What’s the outlook for this yr’s reinsurance enterprise section?

The economic system having been absolutely opened up in January this yr, we count on to see a revival of the financial actions which ought to translate into further alternatives for our sector and which ought to translate into further premiums ceded to us.

Going by the discount within the covid-19 optimistic instances, we hope to see a discount in claims for each medical and Life enterprise and subsequently enhance the efficiency of those two traces.

We additionally count on a progress in income ensuing from the alternatives from Oil & gasoline actions, marine and agriculture traces of enterprise.

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