Performance of the Industry-2007
Total market Report
Growth in Insurance Incomes from 2003-2007

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LIFE BUSINESS

Total Net Premiums (Le) Market share By Net PremiumMarket Share (%)
2003 2004 2005 2006                2007                 2003

2004

2005

2006 2007
Aureol Insurance 451,434,000 517,647,000 814,529,000 1,378,489,000 1,253,843,000 50% 72% 66% 104% 111%
NIC 287,965,000 138,524,000 232,974,000 (191,593,000) (317,946,000 32% 19% 19% -14% -28%
RITCORP 169,860.000 64,095,000 178,528,000 136,744,000 198,160,000 19% 9% 15% 10% 17%
Total 909,259,000 720,266,000 1,226,031,000 1,323,640,000 1,134,057,000 100% 100% 100% 100% 100%

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AUREOL and RITCORP control major part of the life sector of the insurance business in Sierra Leone. Aureol continues to lead the life sector of the insurance market, followed by RITCORP that has recorded an increase in market share this year, whilst NIC is still     yet to recover from the massive surrenders of privately insured pension schemes with the company following the introduction of the NASSIT. This warrants the management of NIC to be more proactive in their marketing strategies, servicing of their existing clientele, and introduction of new policies/products, in order to reverse the downwards negative trend in their life portfolio if the life portfolio is to survive at all. AUROEL continues to experience huge increase over the years especially in 2007 when compared to 2006 market is to survive at all. AUROEL continues to experience huge increase over the years especially in 2007 when compared to 2006 market share. It is worth noting that there is a marginal decrease in the life portfolio premiums in 2007 of about 14% when compared to 2006

GENERAL BUSINESS

Market share by Gross Premium
Insurance Total Gross Premiums (Le Market share (%)
2003 2004 2005 2006 2007 2003 2004 2005 2006 2007
Aureol Insurance 3,182,949,000 3,550,811,000 4,438,207,000 5,466,479,000 7,430,329,000 35.5% 32.2% 29.3% 31% 34%
NIC 3,208,297,000 3,483,251,798 3,800,310,000 4,167,679,000 4,666,075,000 35.7% 31.6% 25.1% 24% 21%
RITCORP 1,817,274,156 2,575,665,723 2,841,660,030 3,179,735,186 4,409,232,900 20.2% 23.4% 18.8% 18% 20%
Transworld 456,146,677 742,235,821 1,403,813,443 1,207,238,089 1,509,965,772 5.1% 67% 9.3% 7% 7%
Int’l Insurance 80,163,000 346,999,000 1,764,100,000 1,783,568,000 2,219,826,000 0.9% 3.2% 11.7% 10% 10%
Marine & General 132,554,961 178,831,320 192,243,349 234,126,097 391,891,144 1.5% 1.6% 1.3% 1% 2%
MAGIC 100,958,125 133,472,450 612,993,840 1,015,051,112 885,397,649 1.1% 1.2% 4.1% 6% 4%
SLICO 70,463,731 488,124,802 409,823,275 0.0% 0.0% 0.5% 3% 2%
Total 8,978,342,919 11,011,267,112 15,123,791,393 17,542,019,286 21,942,540,740 100% 100% 100% 100% 100%

The market share of the non-life sector continues to grow gradually during this year. The three companies – AUREOL, NIC & RITCORP now control 75% of the total market. The 25% market share is controlled by the others IIC-10%, Transworld -7%, and the remaining 8% by MAGIC & Marine & general. From the analysis, it could be seen that AIC and RITCORP made a significant increase in 2007, whilst M&C made a marginal increase, IIC maintained a stable market share, whilst NIC, SLICO & MAGIC recorded a decrease in market a positive change in total gross premium from 2006 to 2007. Aureol still takes the lead in the market. Relatively the growth rate has not been stable over the years, 2003 to 2004 shows a 23% increase, whilst 2004 to 2005 shows a growth shows a growth of 37% 2005 to 2006 shows a 16% downward change and 2006 to 2007 shows and increase of 23% in total gross premium this increase in insurance penetration enjoyed by companies can be clearly attributed to the growth in the economy and the proactive marketing strategic employed by some players in the market and also due to the presence of the Commission, which has brought sanity to the industry this past few years and confidence now reposed in these companies by the insuring public.

The commission is confidence that this growth rate will continue to increase in 2008, as insurance activities will continue to improve due to the setting up of new foreign banks, new companies and the revival of the mining sector. Analysis as per class of insurance business was not computed due to non-availability of data from the various insurance Companies as a direct result of the long awaited proposed insurance regulations that incorporates the financial reporting guide.

Underwriting Results for general business – 2007
Insurance Companies Management Expenses Claims Incurred Outstanding Premium
Aureol Insurance 3,101,253,000 1,801,171,000 1,150,867,000
NIC 2,472,289,000 354,470,000 2,467,670,000
RITCORP 1,597,122,000 266,776,000 1,931,902,000
Transworld 552,685,840 197,363,700 0
MAGIC 525,739,270 525,739,270
IIC 900,469,203 402,702,000 356,491,000
M&G 85,286,606 57,545,285 13,176,930
SLICO 239,681,964 23,505,000
Total 9,474,526,883 3,629,272,255 5,920,106,930