BACKGROUND
No National Insurance Company existed until 1977. Only foreign brokers were operating in the insurance industry. Anxious to restore that sector and in order to ensure efficient protection of individuals and enterprises capital, the government of Burundi established a national insurance company: societe d Assurnace du Burundi (SOCABU) under the bill no 100/61 of June 29th, 1977 with the monopoly in the Burundi insurance industry.

On the same date i.e. on June 29th, 1977, the president of the republic promulgated two bills numbered 1/17 and 1/18 respectively, the first one bearing the general regulation governing insurance companies and the second one instituting the civil liability compulsory insurance for motor vehicles, the two legal investments being inspired by the will to put in place general rules governing legal relationships arising out of insurance contracts on one hand, and to ensure a direct control of the state over insurance operations on the other hand. SOCABU launched its operations with 21 staff members on October 3rd, 1977.

SHAREHOLDING
When it started its activities, it was empowered with a capital made up of 90% state shares and 10% Belgian private shares: BOELS & BEGAULT and E.I.C.

From 1985, the government of Burundi thought it worth handing over some of its shares to certain public and private enterprises, notably banks and financial institutions.

Today, the state participation in the SOCABU shareholding is estimated to 25%, the other part being let to moral and natural persons as shown on the table below.

TREN OF THE OPEARTIONAL ACCOUNT:
FISCAL YEARS 1998 TO 2002.
The orparationl account is fed with the following main elements:
- Off-tax technical products
- Financial products
- Off-tax technical charges
- Off - tax output to be allocated.
Provisional data
Major interventions in the field of accidents during the same period:
CHUK : euros 2,260,654; i.e. BIF 2,630,000,000
BTC : BIF 337,434,459
BUMATCHO : BIF 230,304,420

CONTRIBUTION TO THE NATIONAL ECONOMY

1. BUILDING INVESTMENTS
SOCABU has invested a lot of financial building sector in order to protect SOCABU financial resources against the public powers in the resolution of the hard problem about the availability of offices or lodging premises on the other hand. Hence, the company owns about twenty high standing residential houses and plots worth a billion Burundi francs.

2. STAKEHOLDING IN THE CORPORATE CAPITAL OF COMMERCIAL ENTERPRISES.
To date, SOCABU is a shareholder in 20 big commercial companies operating in the banking sectors, the coffee industry, oil products trading, the hotel industry, etc.

3. INVESTMENTS IN BANKS
On December 31st 2002 they were broken down as follows:
Treasury certificates : BIF 1,766,000,000
Vouchers : BIF 2,406,500,000
Total : BIF 4,172,500,000

4. CONTRIBUTIONS TO THE TREASURY
SOCABU contributes to the funding of the treasury through the regular payment of various taxes and duties as well as through the deposits of dividends from the shares of the government.
All those accumulated contributions during the 25 years of existence of SOCABU are amounted to BIF 6,191,000,000.

5. EMPLOYMENT PROMOTION
SOCABU has supported the government in its employment promotion policy.
Its staff has been growing throughout, from 21 agents in 1977 to 129 in 2002. Incomes already allocated as employees' salaries are amounted to BIF 5,366,000,000.