SOCABU

After years of hardship, Burundi got back to growth. In 2009, insurance has been developing at a +13.5% pace, well above that of the GDP with only +3%. The Société d’Assurances du Burundi (SOCABU) has been at the core of this development. Established in 1977, SOCABU has dominated the insurance market in Burundi. From its headquarters in Bujumbura, the company has been underwriting life and non-life risks all over the country.

With a +12.8% average annual growth of its turnover between 2005 and 2009, SOCABU has managed to consolidate its position as a leader of the Burundi market. Despite the increase of its loss experience in 2009, the company is posting an excellent result thanks to sound financial incomes. Estimated at about 1.4 million USD, the latter account for 21.5% of the written premiums of the year.

More than thirty years after its creation, SOCABU is reporting substantial growth in the recent five years. With life insurance growing at a +36.2% pace per year against a +6.1% for non life business, the company could bring a new breath in its endeavour for critical size.

NDUWIMANA Onésime	SINDAYIGAYA Augustin
General Manager	Life insurance manager

Main technical highlights: 2005-2009

in USD

	2005	2006	2007	2008	2009
Gross written premiums	4 100 067	4 777 290	5 217 004	6 125 145	6 631 372
Written premiums net of reinsurance	3 410 824	3 985 674	4 385 276	4 976 794	5 398 915
Gross earned premiums	NA	NA	3 531 462	4 312 114	4 752 532
Gross incurred losses	2 640 297	3 258 803	3 592 486	2 811 418	3 542 673
Loss ratio*	NA	NA	101.7%	65.2%	74.5%
Management fees	1 824 400	2 307 465	2 084 543	2 430 044	2 741 389
Technical result	640 933	782 988	873 601	1 213 315	1 193 109
Financial income	1 216 317	956 975	1 225 533	1 497 713	1 426 609
Net result	48 061	710 409	828 175	1 058 459	924 541

* Loss ratio = Incurred losses / Earned premiums NA: Non available

Evolution of premiums, losses, management expenses and results

in thousands USD

Turnover’s evolution per class of business: 2005-2009

in USD

	2005	2006	2007	2008	2009	2009 shares	08/09 growth
Non life
Motor	2 000 802	2 035 015	1 960 254	2 106 234	2 484 009	37.5%	17.9%
Marine	922 371	842 268	977 654	1 194 843	820 027	12.4%	-31.4%
Fire & other property damage	518 715	651 276	559 001	1 007 660	1 060 893	16%	5.3%
Total non life	3 441 888	3 528 560	3 496 908	4 308 737	4 364 929	65.8%	1.3%
Life
Total life	658 179	1 248 731	1 720 096	1 816 407	2 266 443	34.2%	24.8%
Grand total	4 100 067	4 777 290	5 217 004	6 125 145	6 631 372	100%	8.3%

Breakdown per class of business in 2009

SOCABU’s market shares in Burundi: 2006-2009

Life and non life markets

Non life market

Life market

Motor

Marine

Fire and other property damage

Evolution of ratios: 2007-2009

¹ Management expenses on gross written premiums

Exchange rate BIF/USD as at 31/12	2005	2006	2007	2008	2009
	0.00098	0.00096	0.00088	0.00081	0.00079