Sonarwa Holdings Ltd has named new top executives to run its insurance business in the first major changes since the split into two separate entities, Sonarwa Life Insurance and Sonarwa General Insurance Company.
Emiola Olusoji Adekunle has been appointed managing director Sonarwa General Insurance Company. He replaces Jacob Erhabor while Aina Ademola Adedayo replaced Tonny Twahirwa as the managing director Sonarwa Life Insurance Company.
Allen Karungi Gatete, the corporate communications manager, said that the two former heads have been working in acting capacity since company was restructured last year.
“The appointment [of substantive] managers will now allow us to position ourselves better in the market and look at better service delivery and new products,” she said.
She added that the new managers had the necessary experience to enable Rwanda’s leading insurance group build its clientele in the rapidly growing insurance industry.
Rwanda’s insurance industry has experienced tremendous growth since 2012, with total assets now worth Rwf222 billion, up from Rwf176 billion in June 2012.
During the same period, gross premiums increased by 15 per cent from Rwf 33 billion in June 2012 to Rwf38 billion last year. Private insurers took a larger share of Rwf22 billion, compared with the public insurers’ Rwf16 billion.
Figures show that underwriting profit increased by 21 per cent, from Rwf6 billion to Rwf8 billion while profitability after tax rose by 26 per cent, from Rwf12 billion to Rwf16 billion.
Similarly, the liquidity position of the insurers is considered strong as the current ratio stands at 350 per cent. The return on assets increased from 14 per cent to 16 per cent and the return on equity increased from 23 per cent to 24 per cent in the period under review, as most of the insurers continued to invest prudently.
There are over 10 insurance companies operating on the Rwandan market, but the sector still suffers from low penetration rates blamed mainly on shortage of qualified underwriters and lack of awareness.