Get real time updates directly on you device, subscribe now.
By Monica MUEMA
Insurance Industry gross written premium stood at KES 180.03 billion as at end of Q2 2023 representing an increase of 10.4% from KES 163.06 billion in Q2 2022.
Insurance Regulatory Authority (IRA) performance statistics for the second quarter of the year attributes the growth to the continued economic recovery from the negative effect of COVID-19 in 2020 and 2021.
The income has been rising for the past three years, rising from a three year low of KES 79.3 billion in Q1, 2021.
Long term insurance business premiums amounted to KES 74.89 billion accounting for 41.6% of the total industry premium while general business premiums amounted to KES 105.04 billion (58.4%). This is an improvement of 6% compared to KES 70.66 billion in a similar quarter in the previous year.
The long-term insurers’ asset base grew by 13.2% to KES 676.32 billion, compared to KES 597.64 billion in Q2 2022, and largely composed of income generating investments of KES 641.02 billion. Of the total assets, 9.9% (KES 67.18 billion) was funded through shareholders’ equity.
Investment income (revenue account, and profit and loss account) under long-term insurance business increased to KES 27.49 billion as at end of Q2 2023 (Q2 2022: KES 16.58 billion) and for general insurance business increased to KES 6.49 billion as at end of Q2 2023 (Q2 2022: KES 4.62 billion).
Under general insurance business, Miscellaneous gross premium income had the highest growth of 84.1%, from KES 1.84 billion reported in Q2 2022 to KES 3.39 billion reported in Q2 2023.
Workmen’s Compensation recorded the largest decline from KES 8.34 billion recorded in Q2 2022 to KES 7.77 billion in Q2 2023.
Medical, motor private and motor commercial continued to dominate claims accounting for 44.2% (KES 17.43 billion), 22.7% (KES 8.96 billion) and 22.2% (KES 8.78 billion) respectively of total industry paid claims under general insurance business.
The underwriting performance of the general insurance business was a loss of KES 1.59 billion which was a decline from a loss of KES 1.49 billion reported in Q2 2022. However, the general reinsurer’s underwriting performance was a profit of KES 1.28 billion which was an increase of 93.4% from a profit of KES 663.74 million in Q2 2022.
Industry assets increased by 13.8% to KES 1.02 trillion against industry liabilities of KES 828.88 billion. This resulted in a net asset of KES 188.46 billion.
Financial Fortune is a digital financial news website and print business magazine published in Nairobi by Fortune & Transit Publishers Ltd and covers the financial services sector through news, views and extensive people coverage since 2018.