Uganda Reinsurance that was launched recently is planning to list on the Uganda Securities Exchange (USE).
Reinsurance is when primary insurance companies cede part of their risks to other companies – reinsurers – that are ideally stronger so that in case of any risk, the reinsurer shares the risk to avoid huge losses to be borne by a single company. The plan to set up Uganda Re was mooted by the players, arguing that the industry was losing billions of shillings annually in search of reinsurance services overseas.
In Uganda, 40 per cent of the total annual premiums are remitted to overseas countries with operational reinsurance companies. Data from IRA indicates that the amount of money local insurance firms pay in re-insurance premiums abroad has been growing steadily over the years, rising from Shs40 billion in 2008 to Shs115.99 billion in 2011.