National Insurance Corporation

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National Insurance Corporation (NIC)
Type Public: USE: NIC
Industry Financial Services
Founded 1964
Headquarters Kampala, Uganda
Key people Remi Olowude
Chairman
Bayo Folayan
Managing Director[1]
Products Insurance, banking, investments
Revenue IncreaseAftertax: US$787,400+ (UGX:2.02 billion) (2013)
Total assets US$33.1 million (UGX:85.04 billion) (2013)
Website Homepage

National Insurance Corporation Limited, commonly referred to as National Insurance Corporation (NIC), is an insurance company in Uganda. The company is a leading provider of insurance and risk management services in the country.

Overview[edit]

NIC, one of the licensed insurance companies in the country, is a medium-sized insurance services provider in Uganda. As of December 2013, the company's total assets were estimated at about US$32.8 million (UGX:85.04 billion). During the financial year that ended December 2013, the company realized approximately US$787,400 (UGX:2.02 billion) in after-tax profit.[2] At that time, shareholders' equity was calculated at about US$10.4 million (UGX:26.611 billion).[3]

History[edit]

NIC was established by Act of Parliament in 1964. Prior to 2005, 100% of the company was owned by the Government of Uganda. In June 2005, the Government of Uganda divested 60% of its shares in NIC. These shares were acquired by Industrial and General Insurance Company Limited (IGI) of Nigeria. In December 2009, the Government of Uganda began the process of divesting entirely from the company by floating its 40% shareholding on the Uganda Securities Exchange (USE).[4]

Subsidiaries[edit]

As of December 2013, the company maintains the following subsidiaries:[5]

  1. NIC (South Sudan) Limited - Juba, South Sudan South Sudan - 100% shareholding
  2. Capital Assets Investment Limited - Kampala, Uganda Uganda - 100% shareholding
  3. Premium Trust Investment (Uganda) Limited - Kampala, Uganda Uganda - 100% shareholding
  4. NIC Trustees and Investment Limited - Kampala, Uganda Uganda - 100% shareholding

Ownership[edit]

Until December 2009, 60% of NIC was owned by a consortium called Corporate Holdings Limited. The consortium is owned by Industrial and General Insurance Company Plc (IGI), Nigeria's leading insurance company (85%) and by local businessmen Patrick Bitature and Erik van Veen (15%). The remaining 40% of NIC, was owned by the Government of Uganda.[6]

Beginning on 31 December 2009, the Ugandan Government initiated the process to list on the Uganda Securities Exchange (USE), the 161.6 million shares of NIC that they owned. That process concluded on 25 March 2010, when active trading of NIC began on the USE, under the symbol NIC.[7] As of December 2013, the ownership of the company is as depicted in the table below:[8]

National Insurance Corporation Stock Ownership
Rank Name of Owner Percentage Ownership
1 Corporate Holdings Limited 60.00
2 Crane Bank 10.33
3 Sudhir Ruparelia 10.27
4 Joseph Tukuratiire & Ketrah Tukuratiire 1.78
5 Rashid Ssenyonga 0.66
6 Mundu Abala Joseph (ITF Abala Brian) 0.50
7 Biao Wang 0.50
8 Alli Mohamed Kiiza & Ruth Lubwama 0.50
9 Alnashir Popat 0.50
10 Timothy Sabiiti Mutebile 0.50
11 Individual and Institutional Investors on the USE 14.46
Total 100.0

Branch network[edit]

The company has a branch network in the following Ugandan towns; Arua, Busia, Fort Portal, Gulu, Jinja, Kapchorwa, Kasese, Lira, Mbarara, Malaba, Masaka, Masindi, and Mbale. In addition, NIC also has a branch in Juba, South Sudan.[9]

Products and services[edit]

NIC's products and services list includes the following:[10]

  • Marine and Aviation
  • Engineering and Contractor
  • All Risks Insurance
  • Group Personal Accident
  • Workers Compensation
  • Employer’s Liability
  • Motor Insurance
  • Fire and Allied Perils
  • Theft/Burglary
  • All Risks
  • Cash In Transit
  • Fidelity Guarantee
  • Goods in Transit
  • Public & Products Liability
  • Professional Indemnity
  • Computer and Electronics
  • Estate Fire Insurance
  • Estate Comprehensive
  • Group Credit/Microfinance Credit
  • Whole Life & Endowment
  • Term Insurance
  • Mortgage Care
  • Children's Endorsement
  • Key Man's Insurance
  • NIC Group Pension
  • Death In Service Benefit
  • Lump Sum Savings Plan
  • Medical Express Insurance
  • School Fees Insurance Scheme
  • Microfinance Care
  • Travel Health Plus
  • Travel Personal Accident
  • Travel Health Insurance
  • Personal Pension and Annuity-Plus Plan
  • Dividend Plus Plan
  • Leasecare Policy
  • Integrated Benefit Plan

Other investments[edit]

NIC together with its parent company IGI are major shareholders in Global Trust Bank, the 18th largest commercial bank in Uganda. NIC is also a minority shareholder in DFCU Group, the parent company of DFCU Bank, Uganda's 6th largest commercial bank.[11]

Governance[edit]

The governing body of the company is the nine-member Board of Directors. Remi Olowude, one of the non-Executive Board members, is the Chairman.

The Management team comprises seventeen managers. Bayo Folayan is the Managing Director, responsible for the daily administration of the company activities.

See also[edit]

References[edit]

  1. ^ NIC, . (.). "National Insurance Corporation Board of Directors". National Insurance Corporation (NIC). Retrieved 1 July 2014. 
  2. ^ Ainebyoona, Emmanuel (30 June 2014). "NIC Intends to Cross-List Shares On Nairobi Stock Exchange". Daily Monitor. Retrieved 30 June 2014. 
  3. ^ EABW, . (29 June 2014). "Uganda: NIC In Uganda Offers Shares". East African Business Week (Kampala) via AllAfrica.com. Retrieved 1 July 2014. 
  4. ^ Ojiambo, Fred (30 December 2009). "Uganda to List 40% Stake In National Insurance, Monitor Reports". ©2014 Bloomberg L.P. Retrieved 1 July 2014. 
  5. ^ NIC, . (29 March 2014). "2013 Annual Financial Report: Related Parties". National Insurance Corporation. Retrieved 1 July 2014. 
  6. ^ Juuko, Sylvia (2 June 2005). "Government Concludes 60% NIC Sale". New Vision. Retrieved 1 July 2014. 
  7. ^ Irungu, Geoffrey (31 December 2009). "Uganda’s National Insurance Corporation to Launch IPO". Business Daily Africa. Retrieved 1 July 2014. 
  8. ^ NIC, . (29 March 2014). "Audited December 2013 Annual Financial Report". National Insurance Corporation (NIC). Retrieved 1 July 2014. 
  9. ^ NIC, . (2011). "NIC Branch Network". National Insurance Corporation (NIC). Retrieved 1 July 2014. 
  10. ^ NIC, . (.). "National Insurance Corporation Product List". National Insurance Corporation (NIC). Retrieved 1 July 2014. 
  11. ^ List of Ugandan Banks by Asset Share Capital

External links[edit]