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NIC to Restructure Investments as Annual Incomes Dwindle

NIC boss, Bayo Folayan

The National Insurance Corporation limited (NIC) is set to restructure their investments as one way of ensuring profitable earnings in the future.

NIC suffered a decrease in their 2016 Income from investment with a significant fall from Ushs1.67 billion in 2015 financial year to Ushs1.38 billion earned in 2016.

Speaking to journalists at the Uganda security exchange offices in Kampala, pharmacy Bayo Folayan, page the Managing Director NIC said; “although there was an increase in the Net Underwriting Income by 35% from Ushs7.54b in 2015 to Ushs10.1b in 2016, the income from investments declined.”

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He attributed the decline to the struggling economy and unpredictable investments.

Folayan said that to curb this issue, they were going to restructure their investments by selling some old ones, buying some new ones and rejuvenating some to fit the current economic situation.

“We have made different investments in land, estates, bonds, finances and many other areas. Our Total assets have grown significantly from Ushs94b in 2015 to Ushs98.3b in 2016. Claims paid in 2016 have also increased from Ushs 1.369b to Ushs2.681b.”

He added; “However we are not earning enough for our customers like we should be doing from these investments.There is a general constrain on Uganda’s economy especially the insurance sector.”

“However, we are confident that by restructuring, we will be able to earn enough,” Folayan said.

NIC was privatized in 2005.

Government sold 60% of its shares to Corporate Holdings Limited, a special purpose vehicle registered by Industrial and General Insurance Plc (IGI).

In 2010, the balance 40% shares of NIC were sold to the public in an Initial Public Offer (IPO); the shares were listed on the Uganda Securities Exchange on March 25, 2010.

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