Rwanda’s Insurance Industry Profit Up 86 Percent

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Rwanda’s insurance industry recorded a 86 per cent net profit growth to Frw 18.6 billion in June 2017, according to statistics from the central Bank.

A recent monetary policy and financial stability statement highlighting the state of the economy delivered by the governor National Bank of Rwanda John Rwangombwa says that the insurance sector’s profits increased by 86 percent from a profit of Frw10 billion in June 2016 to a profit of FRW 18.6 billion in June 2017.

On the performance of the insurance sub-sector, the diversification of business has greatly contributed to strong liquidity of the insurance sector.

According to John Rwangombwa the assets of the insurance industry also continued to grow driven mainly by the recapitalization proceeds as well as improved incomes.

The assets of the pension sub-sector also continued to increase in the first half of 2017 on account of increasing contributions and positive growth of investment income.

During the same period as at June 2017, 11 out of 14 private insurers (compared to only 5 in June 2016) met the solvency requirements.

Rwanda’s insurance sector penetration remains relatively low, at under 3 per cent. A new entrant into the market, Bank of Kigali General Insurance, however promises to achieve two-digit penetration by 2023 with a projected premium of RWF 22 billion.

To ensure the sustainability of the financial sector and encourage its continued growth, BNR extensively reviewed its legal and regulatory frameworks in line with international standards.

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