BK Insurance, Sonarwa to merge into new insurance group

BK General Insurance Ltd, a subsidiary of BK Group, Sonarwa General Insurance Ltd and Sonarwa Life Assurance Company Ltd – both subsidiaries of Rwanda Social Security Board (RSSB) – have announced plans to merge and form a new insurance group. The announcement, released on April 17, indicates that the proposed new insurance group aims to combine the strengths of insurance providers to enhance market offerings and create long-term value for shareholders, customers and employees. ALSO READ: Can innovation in Rwanda's insurance sector boost uptake? “This move marks BK General Insurance's strategic entry into life insurance, reinforcing its commitment to diversified financial solutions,” Uzziel Ndagijimana, CEO of BK Group said in a statement. The consolidation will allow the new insurance group to leverage an expanded distribution network, reaching a wider customer base and enhancing both sales and customer engagement. “This aligns with the strategic focus of the shareholders and the companies involved on anticipating customer demand for innovative and tailored solutions. The proposed transaction is subject to regulatory, shareholders, and other customary approvals.” However, it indicated that the agreement has not yet been finalized and discussions are ongoing among the shareholders of the involved entities. This comes at a time when the insurance industry and other stakeholders in the country’s financial landscape are building a national insurance strategy that seeks to establish a new legal and regulatory framework that not only provides stability and transparency but also inspires confidence in investors. The strategy is expected to drive innovation through encouraging insurers to offer insurance solutions that address emerging risks and cater to the diversified needs of people, while ensuring data protection and privacy strategies are robust. Established in 2017, BK General Insurance recorded a 9.4 per cent increase in gross written premiums, reaching Rwf16 billion in 2024 compared to the previous year. Its net profit increased by 41.1 per cent to Rwf4.5 billion. However, it paid Rwf3.7 billion in claims which resulted in a loss ratio of 33 per cent. The insurer’s total assets stood at Rwf27.5 billion as of the end of 2024.

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BK Insurance, Sonarwa to merge into new insurance group