TALKS PLANNED OVER UGANDAN REINSURANCE VENTURE

Insurers in Uganda are due to hold a key meeting with their advisers within days as part of their efforts to establish a domestic player in the country’s reinsurance sector. The discussions are to take place between members of the Uganda Insurers’ Association and a specially appointed consultant from Kenya, amid concerns that the target of establishing the reinsurer by the end of 2001 may not now be met. Insurers’ association chairman Joseph Kiwanuka said that “we wanted to be in business some time this year, but it may be that because of logistics it could be later”. Mr Kiwanuka, who is also managing director of Ugandan primary player Statewide Insurance Co, noted that a strategic investor would be allowed to take “up to 49%” in the reinsurer, but insisted that Uganda’s insurers did not plan to release a controlling interest in the business. Two Kenyan companies — East Africa Re and PTA Re — are prospective investors in the Ugandan venture, but Mr Kiwanuka said that “the door is not closed yet, despite these two companies expressing an interest”. Uganda is looking to establish a national reinsurer in an effort to stop funds heading out of the country. Primary firms estimate that a domestic reinsurance business could help retain up to 80% of Uganda’s insurance premiums within the local market. However, the insurers’ association has opted to look for outside help after acknowledging that there is insufficient capital within Uganda to get the venture off the ground.