Businesses & Financial News

Insurance Premiums Jump 11.4pc to KES 237.9 Billion in three months to Sept ’22

Get real time updates directly on you device, subscribe now.

By Monica MUEMA

Kenya’s insurance industry premiums increased by 11.4 % to hit KES 237.90 billion in the third quarter of (Q3) 2022 from KES 213.53 billion in Q3 2021.

Insurance Industry Report for the period July – September 2022 attributes the growth to the continued economic recovery from the negative effect of COVID-19 in 2020 and 2021.

Long term insurance business premiums stood at KES 103.49 billion  accounting for 43.5% of the total industry premium while general business premiums amounted to KES 134.41 billion (56.5%).

Under general insurance business, fire industrial gross premium income had the highest growth of 30.9%, from KES 11.55 billion reported in Q3 2021 to KES 15.12 billion reported in Q3 2022. Personal accident had the largest decline from KES 2.12 billion recorded in Q3 2021 to KES 2.02 billion in Q3 2022.

The underwriting performance of the general insurance continued to make an improvement recording a loss of KES 2.26 billion from a loss of KES 4.13 billion reported in Q3 2021.

Workmen’s compensation class made the highest underwriting profit of KES 2.48 billion while motor private, motor commercial and personal accident classes of general insurance business incurred the highest underwriting losses of KES 2.89 billion, KES 1.75 billion and KES 868.74 million respectively.

“The total Gross Premium Income (GPI) reported under long term insurance business by the end of Q3 2022 amounted to KES 103.49 billion (Q3 2021: 92.12 billion) representing a growth of 12.3% compared to a growth of 24.0% in Q3 2021,” the report indicates.

Deposit Administration and Life Assurance classes remained the biggest contributors to the long-term insurance business GPI accounting for 36.3% and 25.2% respectively.

On the other hand, the reinsurers’ business volume increased by 29.1% to KES 28.06 billion in Q3 2022 (Q3 2021: KES 21.73 billion) improving the underwriting results significantly from a loss of KES 245.80 million in Q3 2021 to a profit of KES 1.26 billion in Q3 2022.

The insurance industry profit before tax hit KES 9.06 billion a 3% increase compared to KES 8.79 billion recorded in Q3,2021

Asset base grew by 9.8% to KES 918.02 billion at end of Q3 2022 from the KES 836.11billion held at end of Q3 2021. A significant portion of total assets KES 805.42 billion (85.6%) were held in income generating investments.

 44 total views,  1 views today

Get real time updates directly on you device, subscribe now.

Social Media Auto Publish Powered By :