SPEECH DELIVERED BY THE CHAIRMAN OF THE BOARD OF DIRECTORS AND THE GENERAL ASSEMBLY AT THE OPENING CEREMONY OF THE 46TH ANNUAL ORDINARY MEETING OF THE GENERAL ASSEMBLY 

28 June 2024

 

The Rt. Hon. Prime Minister,

Shareholders and Representatives of Member States,

Distinguished Guests and Observers, 

Ladies and Gentlemen,

 

It gives me great pleasure to stand before you today—here in the beautiful city of Kampala—to review the activities of our pan African organisation, Africa Re. 

 

Let me use this opportunity to celebrate the memory of our departed leader, Mr Bakary Kamara, whom we lost early this year.  Mr Bakary Kamara was the former Managing Director / Chief Executive Officer of the Corporation from 1993 to 2011, and an Independent Director and Vice Chairman of the Board from 2021 until his passing. The board and the general assembly will miss his rich insights and thought-provoking perspectives on the Corporation and the African insurance industry at large. May his gentle soul rest in peace.

Your Excellencies, 

Distinguished Delegates,

Ladies and Gentlemen, 

 

After Eritrea in 2001, Ethiopia in 2011 and Rwanda in 2016, we are back again in East Africa to host the Annual Ordinary Meeting of the General Assembly of our beloved Corporation, Africa Re. 

 

Let me start by saying a big thank you to the Ugandan Government and the local insurance fraternity for accepting to host this 46th Annual Ordinary Meeting of the General Assembly in Uganda.  On behalf of our shareholders, Board of Directors and staff of Africa Re, I express deep appreciation to the Local Organising Committee led by the Ministry of Finance, Planning and Economic Development and the Insurance Regulatory Authority (IRA) that have collaborated with Africa Re to make this event a resounding success.  

 

We also express profound gratitude for the commendable support of several government stakeholders that spared no resources to ensure the success of this event. They include, amongst others: 

•The Uganda Insurers Association 

•The Insurance Training College 

•The Insurance Brokers Association of Uganda, 

•The Directorate of Citizenship and Immigration Control

•The Uganda Media Centre

•The Uganda Police Force and

•The Internal Security Organisation 

 

This exceptional collaboration is worthy of emulation.

 

The historic and economic ties of the Republic of Uganda with the rest of the continent cannot be over emphasised. As a member of the African Union, Uganda has been at the fore front of many initiatives that promote intra-regional and sub-regional trade including the East African Community (EAC), and the Common Market for Eastern and Southern Africa (COMESA). Furthermore, Uganda is involved in critical intergovernmental projects like the African Continental Free Trade Area (AfCFTA), the African Union Digital Agriculture Strategy, the Boosting Intra-Africa Trade (BIAT) Action Plan, and the Protocol on Free Movement of Persons, Right of Residence and Right to Establishment. 

 

With its legendary hospitality, Uganda is currently home to over 1.5 million refugees and asylum seekers—the largest refugee population in Africa. This Pearl of Africa, Uganda, is also one of the major educational hubs of the Eastern African region with its over 12,000 international university students from other African countries. Uganda’s rich cultural heritage has also spread to other African countries, particularly in areas of art, literature and music.

 

Your Excellencies, 

Distinguished Delegates,

Ladies and Gentlemen, 

 

Uganda is a founding member of Africa Re in 1976. It signed and ratified the Agreement Establishing the African Reinsurance Corporation. Africa Re has been operating in the Uganda Insurance Market since inception. The insurance Act recognises Africa Re, and the provision for a 5% mandatory cession is enshrined in the Act.

 

The reasons for the establishment of Africa Re remains more relevant today and we implore all African countries including the 42 member states to support the mission of the Corporation “to foster the development of the insurance and reinsurance industry in Africa; to promote the growth of national, regional and sub-regional underwriting and retention capacities and to support the African economic development”.

 

Following commendable growth of insurance premiums from this market, the Corporation opened an Underwriting Representative Office in Kampala in November 2015. We remain hopeful that a formal host agreement will be concluded soon and this office upgraded to a contact office.

 

Since 2015, premium written from this market has increased by 384%, from about US$10.0 million in 2015 to US$ 38.4 million in 2023. The Corporation is playing a significant role in supporting efforts by the Ugandan insurance industry to develop underwriting capacity for complex risks notably in the nascent oil and gas sector. Africa Re is also developing the technical capacity of the market through training programmes for young and experienced professionals across the life and non-life business segments. In fact, the Corporation has enrolled almost 200 Ugandans in our market-leading Young Insurance Professionals Programme (YIPP) across 6 cohorts - and they will be instrumental to the development of the local insurance industry in the coming years. Some of these young professionals are gracing this Annual Ordinary Meeting of the General Assembly.

 

Furthermore, I would like to note that Africa Re has carried out a number of Corporate Social Responsibility initiatives in Uganda—either directly or through the Africa Re Foundation. These include:

•Construction and equipping of the emergency ward at Gombe Hospital in Butambala district (2018).

•Covid-19 support through the Uganda Insurers Association (UIA), for the benefit of Kampala City Council Naguru Hospital.

•Support to the Insurance Regulatory Authority (IRA) to conduct a study on Insurance of Government Assets (2023 to 2024). 

•Support to the Uganda Insurers Association (UIA) to develop an Insurance Literacy Agenda (2023 to 2024).

•Sponsorship Support to the Insurance Training College (ITC) Annual Conferences.

•Sponsorship of the Annual Conferences of the Insurance Brokers Association of Uganda (IBAU).

 

I would like to highlight  that Uganda has provided distinguished resource persons to Africa Re as Board members and Staff, for example:

•Mr. Fred F. MAGYEZI who served on the Africa Re Board and a former Commissioner for Insurance in Uganda.

•Mr. Ephraim Bitarabeho BICHETERO who was the pioneer Regional Director for the East Africa Regional Office of Africa Re  in 1982. He served the Corporation in different capacities until his demise in 1997.

•Mr Ephraim Kiiza BICHETERO, son of Mr. Ephraim Bitarabeho BICHETERO, the current Regional Director for East Africa and incoming Group Deputy Managing Director / Chief Operating Officer of Africa Re who will assume duty on the 1st of July 2024 at our Headquarters in Lagos (Nigeria). 

•The Corporation also has some other Ugandan nationals in its workforce who have demonstrated excellence in their assigned roles and responsibilities.

 

The Africa Re office in Uganda will continue to grow and support the local insurance industry. With the ongoing investments in the Ugandan oil and gas sector, the Corporation will make available its technical expertise and significant experience in the sector, including the management of the African Oil and Energy Pool.  

 

Your Excellencies, 

Distinguished Delegates,

Ladies and Gentlemen, 

 

The African insurance industry has remained resilient despite the numerous challenges ranging from extreme weather conditions, natural catastrophes and significant depreciation of national currencies. We remain resolute in our commitment to the Ugandan market and the continent at large as we continue to deploy A-rated underwriting capacity to the market from AM Best and Standard & Poor’s. Africa Re has risen to the occasion in times of financial stress around the continent through prompt payment of claims, investment in the local market and reducing foreign exchange pressures in the local economy by writing business in local currencies—a privilege that is not provided by international players.

 

We are in constant consultation with the Ugandan authorities as we promote climate resilience solutions that will reduce the potential impact of natural disasters on the local economy. This will further improve the insurance penetration rate which is currently estimated at below 1%. We strongly believe in the prospects of Uganda and remain committed to supporting the local insurance market to reach its highest potential in the short, medium and long term.

 

Your Excellencies, 

Distinguished Delegates,

Ladies and Gentlemen 

 

2023 was a remarkable year for the Corporation as it crossed the psychological milestone of US$ 1 billion in turnover as it posted US$ 1.106 billion gross written premium, translating into a growth of 16.25% over the US$ 951.79 million achieved in 2022. This has helped the Corporation to achieve a record net income of US$ 126.95 million from its underwriting and investment activities. The support of the Ugandan market is an important contribution to this success story. This year, we have proposed a dividend of US$ 10.0 per share. This represents  a significant reward to our shareholders and the Ugandan Government for their belief in Africa Re as the leading pan-African reinsurer.

 

Your Excellencies, 

Distinguished Delegates,

Ladies and Gentlemen,

 

I would like to thank all our ceding companies and other partners. We really appreciate your support and patronage as we strive to fulfil our mission. We will not relent in our efforts to adapt to the ever-changing business environment in order to offer you the best service.  

My gratitude also goes to the sister institutions here present. We really value your support in this noble mission of building a resilient and prosperous Africa.

 

Long live the African Reinsurance Corporation,

Long live the Republic of Uganda,

Long live Africa!

 

Thank you for your attention.