BK General Insurance Ltd., a subsidiary of BK Group Plc, along with Sonarwa General Insurance Ltd and Sonarwa Life Assurance Company Ltd., subsidiaries of the Rwanda Social Security Board (RSSB), have announced their intention to merge and establish a new insurance group.
The announcement, issued on April 17, states that the proposed merger aims to combine the strengths of these existing insurance providers to enhance their market offerings and generate long-term value for shareholders, customers, and employees.
“This move represents BK General Insurance’s strategic entry into the life insurance sector, underscoring its commitment to offering a broader range of financial solutions,” commented Uzziel Ndagijimana, CEO of BK Group Plc, in a statement.
The consolidation is expected to enable the new insurance group to benefit from a larger distribution network, thereby reaching a wider customer base and improving both sales and customer engagement.
The statement further noted, “This aligns with the strategic objectives of the shareholders and the involved companies to anticipate evolving customer demand for innovative and tailored solutions. The proposed transaction remains subject to regulatory, shareholder, and other customary approvals.”
The announcement also clarified that a definitive agreement has not yet been finalised, and discussions among the shareholders of the involved entities are ongoing.
This development occurs as the insurance industry and other stakeholders within Rwanda’s financial sector are developing a national insurance strategy. This strategy seeks to establish a new legal and regulatory framework designed to provide stability and transparency and enhance investor confidence.
The anticipated strategy aims to foster innovation by encouraging insurers to develop solutions that address emerging risks and meet the diverse needs of the population, while also ensuring robust data protection and privacy measures.
Established in 2017, BK General Insurance reported a 9.4 per cent increase in gross written premiums, reaching Rwf16 billion in 2024, up from the previous year.
The insurer’s net profit saw a significant increase of 41.1 per cent to Rwf4.5 billion. However, it paid out Rwf3.7 billion in claims, resulting in a loss ratio of 33 per cent.
BK General Insurance’s total assets stood at Rwf27.5 billion as of the end of 2024.
