Cornerstone to invest sh50b as NIC Holdings begins life under local ownership

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NIC Holdings is embarking on an ambitious turnaround strategy backed by a planned sh50b investment in technology, property redevelopment and business expansion following the acquisition of a controlling stake by Cornerstone Asset Managers, a wholly Ugandan-owned investment firm.

The investment, which is awaiting final regulatory approval, marks a significant milestone for one of Uganda's oldest insurance companies as it transitions into majority local ownership and seeks to restore profitability after years of underperformance.

Speaking during the company's 25th Annual General Meeting recently, Samuel Ssejjaka, Director of NIC Holdings, said Cornerstone, through its Special Purpose Vehicle, Twenty One Ventures Limited, is implementing a comprehensive transformation strategy focused on improving operational efficiency, increasing returns on assets and repositioning NIC as a leading Ugandan insurer.

Samuel Ssejjaka the Director of NIC Holdings, speaking during the company's 25th Annual General Meeting. (Photo by Aloysious Kasoma)

"Our first priority is to review and rationalise the existing business. We shall then automate operations by introducing state-of-the-art digital systems that improve efficiency and customer service," Ssejjaka said.

A major pillar of the strategy will involve unlocking value from NIC Holdings' property portfolio, including the company's headquarters, its Jinja Road property and Plot 2, Portal Avenue.

"The company has significant assets that are currently underutilised. We intend to maximise returns through redevelopment, with planned investments of up to Sh50b across these properties to increase income for NIC Holdings," he said.

Beyond infrastructure, Cornerstone plans to modernise underwriting and service delivery through digital technologies while collaborating with industry players to broaden insurance offerings and improve customer value.

Ssejjaka described the acquisition as a defining moment for Uganda's insurance industry, noting that NIC Holdings is becoming a fully Ugandan-controlled company after Cornerstone acquired 64.95% of the shares previously held by IGI, bringing its total shareholding to approximately 73%.

"Cornerstone is a 100% Ugandan business owned and managed by Ugandan investors. This transaction transforms NIC into a fully Ugandan-owned company. We want to combine international best practices with local knowledge to develop insurance solutions that respond to the needs of Ugandans and deepen insurance penetration," he said.

The transformation comes at a time when Uganda's insurance industry continues to expand. However, NIC General Insurance has struggled to keep pace.

Musiime Dan, CEO Designate of NIC Holdings and NIC General Insurance, said the insurer recorded about 5% growth in 2025, compared to the industry's 15% growth, underscoring the need for urgent reforms.

"While the industry grew by around 15%, NIC grew by only about 5 percent. We have faced several challenges over the years, but this strategic partnership with Cornerstone gives us the opportunity to reclaim NIC's position in the market," Musiime said.

He explained that the company would not pay a dividend this year as management focuses on strengthening the balance sheet, improving capital adequacy and restoring long-term financial stability.

"We appreciate that shareholders expect returns on their investment, but preserving capital at this stage is essential. Our immediate priority is to strengthen the balance sheet, remove impaired assets and maintain the capital levels required by the regulator," Musiime said.

According to Musiime, NIC reported a loss in the previous financial year, prompting management to prioritise internal reforms aimed at restoring profitability and rebuilding customer confidence.

"We have already identified the areas requiring immediate attention. Our task now is to rebuild trust, improve operations and translate the growing investor confidence into sustainable business performance and future shareholder returns," he said.

Despite speculation about consolidation within the insurance industry, Musiime said NIC has no immediate plans to merge with another international insurer.

"Our strategy is different. We are positioning NIC as a company run by Ugandans for Ugandans. We want to rebuild the strong local brand that NIC was once known to be," he said.

We expect this acquisition to spark a new phase of investment, innovation, and operational transformation as NIC Holdings works to restore profitability, increase shareholder value, and strengthen its position in Uganda's increasingly competitive insurance market.