Zimnat Lion Insurance Company, another short term insurance firm, has decided to expand into the region to cushion itself against the present negative macro-economic environment, which it says is not expected to improve in the short term.
It says it had already secured a fee-based contract to manage a short-term insurance business in Uganda, while negotiations to secure another management contract in the region was at an advanced stage. It does not name the country.
According to its report for the six months to June, it had gross premium of $12.3 billion, nearly a six-fold increase from the same period last year when it recorded $2.7 billion.
Gross premium for last year was nearly $6 billion. Underwriting income was, however, down to $288 million, up from $78.3 million last year but this was boosted by investment income which shot up from $320.9 million to $1.4 billion resulting in the company ending up with a net income of $1.1 billion.
It earned $263.5 million in the first half of last year and $629.7 million for the year.