Kampala — The Insurance Regulatory Authority of Uganda (IRAU) has okayed the takeover of a top insurance broker AON-Uganda by a South African private equity (PE) firm CapitalWorks.
The insurance industry regulator also raised no objection with transfer of operations and the change of name from AON Uganda to now Minet Limited.
As a result of the acquisition of the British multinational Aon Plc Africa stakes by CapitalWorks, some of the AON's sub-Saharan operations including Uganda, has been transferred to CapitalWorks, which has since renamed AON's Sub-Saharan African businesses as Minet Group.
The announcement resulting in all the aforementioned developments became public earlier in the year-- February 2017.
With the Capitalworks backing and its Pan African footing, the chief executive officer of IRAU, Mr Ibrahim Kaddunabbi, believes that the presence of Minet in Uganda signifies confidence in the nascent insurance industry.
In his remarks last week during the rebranding of Minet from AON-Uganda, Al-Hajj Kaddunabbi said: "Minet has gone through all the processes that allow them to operate here. The fact that we have approved them it is an assurance that our market can still attract some of the very best." He added: "AON performed well here and we believe that Minet which is taking over will add more value including in areas of oil and gas."
During the launch of Minet Uganda, formerly AON Uganda, it further emerged that the new industry player hopes to deepen insurance uptake in an environment where penetration is less than one per cent.
"With the launch of our risk, reinsurance and human resources advisory operation, we would be marking the beginning of new push to increase insurance penetration in Uganda's corporate sector," reads part of a statement issued by Minet last week.
Minet chief executive officer Maurice Amagola, in his presentation, said companies looking to partake in the oil and gas sector should do so without fear for the organisation he heads is not afraid to cover risks that emanate from oil and gas sector.
He said: "Our oil and gas unit provides specialised insurance solutions to energy, mining, and oil companies involved in all phases of the production in Uganda's fledging oil industry and gas industry."
Mr Amagola is also hopeful that economy will revamp following a five-year lull. Like any other economic sector, insurance thrives when the economy is thriving.
According to the World Bank, there will be a strong recovery of the economy over the next two years--2018 and 2019. The economy is projected to grow above 5 per cent in 2018 and 6 per cent in 2019.
State minister for Trade Gume Fredrick Ngobi said government will help in deepening insurance, saying the sector's potential cannot be allowed to stagnate any further.