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AIG profits rise by 14% in Uganda

By Vision Reporter

Added 3rd May 2009 03:00 AM

THE American Insurance Group (AIG) Uganda posted sh25b in revenue collections last year. This was a 14% growth from sh22b attained in 2007 despite the financial problems, scandals and eminent closure faced by its mother American company.

By David Mugabe

THE American Insurance Group (AIG) Uganda posted sh25b in revenue collections last year.

This was a 14% growth from sh22b attained in 2007 despite the financial problems, scandals and eminent closure faced by its mother American company.

Peter Flint, the president and chief executive officer for AIG businesses in Africa, said despite the scandals that continue to rock the parent firm, including the recent bonus payouts by the top executives, AIG Uganda was strong and would continue to focus on its core businesses.

“We are satisfied with the profit margins and I want to thank our distributors,” Flint said at the Kampala Serena Hotel last week.

As the firm continues to clean its battered image, a possible name change will be announced in June.
It will also build a new office structure at $5m (about sh10.9b) on Akii Bua Road in Nakasero, Kampala.

Alex Wanjohi, the managing director, said AIG had recently settled claims amounting to over sh600b to its Nakivubo Park Yark Market clients, whose merchandise was burnt two months ago.

In a year that can best be described as a “nightmare” for AIG and also the knock-on effects of the global financial meltdown started to be felt, AIG Uganda’s business got better. Overall, Wanjohi said AIG had paid claims worth more than sh11 billion in 2008 – up 120% in 2007.

“This was driven by growth in auto claims, personal accident, workers compensation and marine cargo losses. The company is taking underwriting steps to address and reduce this high loss ratio,” said Wanjohi.

Wanjohi said that in the next few months, AIG will establish a consumer services centre in Kampala, the first of its kind in Uganda.

While in Uganda last September, Flint mentioned that the biggest lesson that the company had learnt arising from the 2008 scandals is that it is important for businesses to stick to their core competences. For this case, AIG needed to concentrate on its core business of insurance

AIG profits rise by 14% in Uganda

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