Prudential now Uganda’s largest life insurer
Tuesday July 27 2021
Prudential’s acquisition of International Air Ambulance will offer customers more value. PHOTO | FILE
Prudential is now Uganda’s biggest life insurer by written premiums, after acquiring the medical insurance business of International Air Ambulance. This increases competition within the industry and offers customers more value.
The acquisition — for an undisclosed amount of money and completed in May but announced on July 14 — will see policy holders, staff and agents of International Air Ambulance (IAA) Healthcare transferred to Prudential Assurance Uganda Ltd.
According to the Insurance Regulatory Authority 2020 industry performance figures, Prudential, then the fourth largest life insurance business, had Ush55 billion ($15.5 million) in written premiums. With this acquisition, it is expected that Prudential has leapfrogged life insurance rivals Jubilee, UAP Old Mutual and ICEA, which at the end of 2020 had gross written premiums of Ush60 billion ($16.9 million), Ush59.3 billion ($16.7 million) and Ush58.2 ($16.4 million) billion respectively.
As the largest Health Membership Organisation in the country, IAA Healthcare grew its portfolio to Ush31.7 billion ($8.96 million) last year, which takes Prudential to Ush86.7 billion ($24.5 million).
“Both IAA and Prudential Uganda have each enjoyed good market share and leadership in their various portfolios over the years and a move of this magnitude speaks of their continued efforts to remain at the top,” said Ibrahim Kaddunabbi Lubega, the CEO of IRA.
He added that mergers and acquisitions in the industry fuel healthy competition, bring about customer-centric innovations and improved service delivery, which will, in turn, result in greater insurance penetration and more people being protected.
Prudential started its business in Africa in 2014, expanding into Uganda in 2015. The IAA deals has brought on more than 100 affiliate clinics countrywide, and some 500 corporate clients with a total of over 50,000 life insurance accounts. Prudential board chairman Apollo Makubuya said the clients inherited from IAA all qualify for the suite of products the company offers, including the Covid-19 extension cover, which offers daily cash payout to support clients who are hospitalised with the disease.