National Insurance Corporation

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National Insurance Corporation (NIC)
Public: USE: NIC
Industry Financial Services
Founded 1964
Headquarters Kampala, Uganda
Key people
Martin Aliker
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 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 an Act of Parliament in 1964. Before 2005, all of the company was owned by the Ugandan government. In June 2005, the government divested 60 percent of its shares in NIC. These shares were acquired by Industrial and General Insurance Company Limited of Nigeria. In December 2009, the government began the process of divesting entirely from the company by floating its 40 percent shareholding on the Uganda Securities Exchange.[4]

Subsidiaries[edit]

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

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

Ownership[edit]

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

On 31 December 2009, the Ugandan government started the process to list on the Uganda Securities Exchange (USE) the 161.6 million shares of NIC that it 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 was 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 branches in the following Ugandan towns: Arua, Busia, Fort Portal, Gulu, Jinja, Kapchorwa, Kasese, Lira, Mbarara, Malaba, Masaka, Masindi, and Mbale. In addition, NIC 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 is a minority shareholder in DFCU Group, the parent company of DFCU Bank, Uganda's 6th largest commercial bank.[citation needed]

Governance[edit]

The governing body of the company is the nine-member board of directors. Martin Aliker, one of the non-executive board members, is the acting chairman.[11] The management team is composed of seventeen managers.[citation needed] Bayo Folayan is the managing director and is responsible for the daily administration of the company.[citation needed]

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-sist shares on Nairobi Stock Exchange". Daily Monitor. Retrieved 30 June 2014. [dead link]
  3. ^ EABW (29 June 2014). "Uganda: NIC In Uganda Offers Shares". East African Business Week (Kampala) via AllAfrica.com. Retrieved 1 July 2014. [dead link]
  4. ^ Ojiambo, Fred (30 December 2009). "Uganda to List 40% Stake In National Insurance, Monitor Reports". Bloomberg L.P. Retrieved 1 July 2014. [dead link]
  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. ^ Vision, Reporter (23 October 2014). "Martin Aliker Is New NIC Chief". New Vision (Kampala). Retrieved 23 October 2014. 

External links[edit]