Capital increase

In order to consolidate their financial bases and revitalise the sector, the authorities are hoping that insurance companies increase their capital. The authorities estimate that non-life insurance companies should have a minimum capital of 1 billion UGX (576 369 USD) while life companies are required to come up with 2 billion UGX (1.1 million USD).

Out of the 100 billion gross premiums collected in 2006 by the sector, 50 billion UGX (28.8 million USD) have been ceded to the foreign reinsurance companies. The capital increase wanted by the public authorities would enable the companies to keep further premiums and to have less recourse to reinsurance.