Sociète Nouvelle d’Assurance du Rwanda (SONARWA), the country’s largest and oldest insurance group has announced investments worth Rwf5.8 billion in real estate and equity this year. Corneille Karekezi, the Chief Executive Officer of Sonarwa yesterday told the New Times that they will inject Rwf4.1 billion in real estate and Rwf1.6 billion in equity investments. He said: “in equity we will invest in the free trade zone and the energy sector.” SONARWA whose market share of the whole insurance industry is estimated to be 48 percent, is currently constructing a four star hotel (Nobilis hotel) in Kiyovu with 61 rooms. According to the press statement release by the company recently the project is valued at Rwf4.2 billion. The company is also investing in modern facilities, a four star “Aparthotel” in Kiyovu with 21 rooms valued at Rwf650 million. “The projects will be inaugurated in the course of 2009,” the statement said. SONARWA is owned by a group of shareholders including Industrial and General Insurance Plc (IGI), Nigeria’s leading insurance company. IGI also holds the same kind of investments spread across East Africa. After the acquisition of SONARWA, IGI announced it would venture into Rwanda’s hospitality facilities announcing $10m into a hotel in Kigali and were also considering an option of making heavy investments in the health sector. Sonarwa currently has 13 branches all over the country and 12 underwriting bureaus. According to the statement the company had good performance last year with a total turnover of Rwf8.8 billion, representing an increase of 35 percent compared to 2007. “Despite the difficult working environment characterised by price undercutting, SONARWA realises very good performance,” the release reads. Gross claims are said to have amounted to Rwf2,196 million in 2007 to Rwf3,363 million last year, an increase of 53 percent. And that in motor, net premium increased by 88 percent compared to 2007. According to statistics, in marine the business recorded increase of 41 percent, while miscellaneous is said to have performed very well with an increase of 8 percent compared to 2007. In the past five years, the company is said to have paid claims worth Rwf8 billion ($14,18m) and generated gross premium income in excess of Rwf22.4 billion ($40.7m). With such performance, more than 90,000 clients and 200 sales agents, SONARWA was set to list six percent of the government stake on Rwanda stock exchange as the first Initial Public Offer (IPO) in the country. But the issue stalled as the six percent stake is considered to be very small. Ends
