CONTACTS: +254 726879488 (Mobile)
+254770 455 116 (Office)
By Steve UMIDHA
The Insurance Industry premiums recorded an increase of 15.6% , hitting KES 311.19 billion in the third quarter of 2024, up from KES 269.30 billion in Q3 2023.
The general insurance business settled claims amounting to KES 71.09 billion, with Medical, Motor Private, and Motor Commercial classes contributing 46.2%, 20.8%, and 19.8% of the total claims settled, respectively. This demonstrates the industry’s continued dedication to policyholder protection and efficient claims processing.
Under the General insurance, premiums totalled KES 164.19 billion in Q3 2024. Motor and medical insurance remained the dominant classes, contributing 63.7% of the gross premium income.
The highest underwriting profits were recorded under Medical insurance (KES 1.18 billion), while Motor Commercial and Motor Private classes incurred the highest underwriting losses of KES 1.63 billion and KES 1.12 billion, respectively.
The overall underwriting performance of general insurance improved significantly, with losses reducing from KES 4.09 billion in Q3 2023 to KES 1.62 billion in Q3 2024.
The total Gross Premium Income (GPI) for the long-term insurance business stood at KES 147.00 billion in Q3 2024, reflecting a 27.2% growth from KES 115.58 billion in Q3 2023. The Deposit Administration and Life Assurance classes remained the largest contributors, accounting for 36.2% and 21.5%, respectively.
The long-term insurers’ asset base grew by 17.1% to KES 826.32 billion, largely composed of income-generating investments totaling KES 784.25 billion. Of the total assets, 10.0% (KES 82.32 billion) was funded through shareholders’ equity.
On the other hand, the reinsurers’ business volume increased by 7.0%, reaching KES 29.33 billion in Q3 2024, compared to KES 27.40 billion in Q3 2023. Despite this growth, underwriting profits stood at KES 2.62 billion, marking an improvement from a loss of KES 407.87 million in Q3 2023.
The insurance industry’s total asset base grew by 14.1% to KES 1.18 trillion, up from KES 1.03 trillion in Q3 2023. A substantial 87.5% (KES 1.03 trillion) of total assets were held in income-generating investments.
The insurance industry Profit before tax (PBT) for the industry saw a dramatic 312.5% increase, reaching KES 53.62 billion compared to KES 12.99 billion in Q3 2023.