American insurer, AIG will exit Uganda for the second time, citing change in group’s business strategy.
A notice signed by Mr Ibrahim Kaddunabbi, the Insurance Regulatory Authority (IRA) chief executive officer, said American International Group (AIG) will on March 30 wind up operations in Uganda.
AIG was licenced to operate non-life insurance business including motor-third party, fire and burglary, among others.
In the notice, IRA said AIG will continue to service its clients till March 2023 but shall not register any new business.
The announcement comes two years after AIG had returned following an earlier exit in 2016, in which it had said, it was creating a simplified organisation to achieve a global strategy based on capabilities.
Industry data indicates AIG’s performance had started to weaken prior to its exit in 2016. For instance, in 2015, data from IRA indicate that AIG posted Shs41b in gross premiums down from Shs42.9b in 2014 yet the company had collected Shs50b in 2013.
AIG, which in 2016 was the third largest general insurer with 8.84 per cent market share, had failed to bounce back.
According to industry data released by IRA in the third quarter of 2020, AIG had registered Shs1.6b in gross premiums underwritten with 0.31 per cent market share.
The insurance industry continues to suffer under low penetration which is less than 1 per cent.