Prudential Uganda has announced that it will payout Ush2.5billion on its clients’ savings for the year 2018, which is a 67% (Ush1 billion) increase over what it paid out in 2017.
In 2017, Prudential declared a Ush1.5billion payout in bonuses to their customers. This registered an average growth rate of 322% over the last two years (of 2015 and 2016)since they bought out Goldstar Life Insurance.
While announcing the bonus payment at Golden Tulip Hotel in Kampala, Arjun Mallik the Prudential East Africa Managing Director said the amount is added onto the clients’ guaranteed amount and paid upon maturity of the policy, loss of life, or disability.
“The bonus applies to customers who have been consistent in paying their premium and have completed at least one year with Prudential as at 31st December 2018,” said Mallik.
He said Prudential has continued to register excellent investment growth from their continued investments in carefully selected assets on behalf of their customers.
“The profits generated from these investments are then shared with our customers in the form of a bonus every year,” added Mallik.
The announcement comes at a time when Prudential Group (worldwide) registered an impressive financial performance with a total profit of US$6.5 billion, Gross Written Premiums of US$63 billion now manages assets worth US$900 billion.
The insurer has set foot in Ghana, Kenya, Uganda, Zambia and Nigeria on the African continent. Recently, Prudential plc acquired a majority stake in insurance companies in Cameroon, Cote d Ivoire and Togo.
Uganda’s insurance penetration – all the money spent on buying insurance remained at equivalent to less than 1% of the economy as the majority of the population do not have insurance covers.
At this level, it is the lowest in the East African region. Kenya’s insurance penetration now stands at slightly above 3.4%, Tanzania 2.3%, and Rwanda 1%. The average penetration for Africa is 6%.
Uganda’s insurance industry currently has 29 insurance companies; including 21 firms for non-life general insurance and 8 firms for life assurance business, and one re-insurer.
According to the Uganda Insurers’ Association 2018 provisional figures, life insurance (including medical) generated premiums worth Ush224 billion in 2018, up from Ush168 billion in 2017 which represents a 33% increase in Gross Written Premium.
BY PAUL TENTENA