Bank of Kigali is considering going into life insurance business. A segment that does not attract investors but is likely to generate high returns.
The bank is planning to inject the amount of 22.6 million USD into its subsidiaries’ capital in order to develop a new source of income and thus remedy the drop in its shareholders ‘returns.
Bank of Kigali, which is expected to control 30% of the life market, will inject a total of 15 billion FRW (17 million USD) into its subsidiary BK General Insurance.
Rwanda has only four life insurers that do not have adequate resources to provide an insurance cover to a growing population. In addition, the growth of the middle class and the low penetration rate offer a considerable growth margin for this segment.