The number of insurers in Rwanda reduced from 16 in December 2018 to 14 in December 2019, according to a Budget Framework Paper released on 21 May by the Ministry of Finance and Economic Planning.
The reduction in the number in 2019 was because of the mergers of SAHAM General Insurance and SAHAM Life with Sanlam General and Sanlam Life Insurance (former SORAS General Insurance and SORAS Life Insurance).
The total assets of the insurance sector increased by 13% from RWF452bn ($474.2m) at 31 December 2018 to RWF509.7bn at end-December 2019. This growth is attributed to capital injection of RWF4.3bn and retained earnings of RWF46.6bn.
The insurance sector remained solvent and maintained capital buffers above the minimum prudential requirements at the end of 2019, says the paper.
The insurance sector provides a valuable risk management function for both individuals and businesses by spreading risks. Its growth and performance is therefore critical for economic growth and development, says the paper.
Meanwhile, the pension sector is composed of one mandatory and occupational hazards scheme (RSSB), which accounts for 95% of the total pension assets; as well as 12 licensed private pension funds which account for the remaining 5%. Total assets of the pension sector increased to RWF936.5bn in December 2019 from RWF808.2bn as of December 2018.