Businesses & Financial News

Insurance premiums hit Sh276.06Bn, but sector net profits dip

By Phyllis Muchoki

Insurance premiums in the fourth quarter (Q4) of 2021 grew by 18.5% to hit Sh276.06 billion up from Sh232.95 billion recorded in the same period in 2020.

According to the latest data from the Insurance Regulatory Authority (IRA), the growth is attributed to economic recovery from the effect of COVID-19 which negatively impacted the growth of insurance businesses in 2020.

Long term insurance business premiums amounted to Sh123.71 billion accounting for 44.8 percent of the total industry premium while general business premiums amounted to Sh152.35 billion (55.2%).

In 2021, long term insurance business premiums accounted for 44.8 percent of the total industry premium and general business premiums accounted for 55.2% as compared to contributions of 43.8% and 56.2% for long term and general respective in 2020.

Life Assurance gross premium income went up by 15.3% from Sh29.57 billion reported in Q4 2020 to Sh34.11 billion reported in Q4 2021.

This growth was largely contributed by GA Life Assurance, ABSA Life Assurance, Britam
Assurance, and Kenindia Assurance Company limited whose life assurance business increased substantially during the year 2021.

The industry’s after-tax profit hit Sh8.65 billion by end of Q4 2021, a decrease of 0.4% from Sh8.69 billion reported by end of Q4 2020.

 

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