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Insurance rates jump 13.2% to KES 269.30 billion in Q3 ’23
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By Isaac OGANGA
Insurance industry premiums increased by 13.2% to hit KES 269.30 billion in the third quarter of 2023, from KES 237.90 billion in Q3 2022.
The general insurance business continued to lead in industry premiums contribution attributed to KES 153.72 billion; 57.1% of the industry’s gross premium income. Long term insurance business premiums stood at KES 115.58 billion accounting for 42.9% of the total industry premium.
Under general insurance business, Motor insurance and medical insurance classes of business account for 63.0% of the gross premium income.
Workmen’s Compensation class made the highest underwriting profit of KES 1.88 billion while Motor Commercial and Motor Private classes of general insurance business incurred the highest underwriting losses of KES 3.21 billion, and KES 2.39 billion respectively.
However, the underwriting performance of the general insurance recorded a drop, from a loss of KES 2.26 billion in Q3 2022, to a loss of KES 4.09 billion reported in Q3 2023.
“The total GPI reported under long term insurance business by the end of Q3 2023 amounted to KES 115.58 billion (Q3 2022: 103.49 billion) representing a growth of 11.7% compared to a growth of 12.3% in Q3 2022,” the report indicates. Deposit Administration and Life Assurance classes remained the biggest contributors to the long-term insurance business GPI accounting for 33.3% and 24.6% respectively.
The long-term insurers’ asset base grew by 11.4% to KES 705.77 billion and largely composed of income generating investments of KES 671.77 billion. Of the total assets, 11.8% (KES 83.0 billion) was funded through shareholders’ equity.
On the other hand, the reinsurers’ business volume decreased by 2.3% to KES 27.40 billion in Q3 2023 (Q3 2022: KES 28.06 billion), decreasing underwriting results significantly from a profit of KES 1.26 billion in Q3 2022 to a loss of KES 407.87 million in Q3 2023.
The insurance industry profit before tax hit KES 13 billion, a 43% increase compared to KES 9.06 billion recorded in Q3,2022.
The insurance industry asset base grew by 12.2% to KES 1.03 trillion as at the end of Q3 2023 from KES 918.02 billion held as at the end of Q3 2022. A significant portion of total assets KES 892.83 billion (86.6%) were held in income generating investments.