Kenindia Assurance has increased interest payable on retirement funds from 11.5 percent in 2018 form 11.25 percent in the previous year.
The rise was backed by remarkable growth in net investment income and profitability, in a year marked by a sharp decline in the earnings of most insurance companies.
In 2018, the insurer recorded gross premium income (including pension fund deposits and annuities) of Sh8.401 billion compared to Sh 7.65 billion the previous year, an increase of 9.73 per cent.
The net investment income of the Company has increased by 8.56 per cent from Sh 3.9 billion to Sh 4.2 billion.
In the same year, net profit rose to Sh329 million up from Sh245 million reported in 2017, representing a 34.21 per cent increase.
“Our 2018 results are a significant improvement over 2017 on all key measures, with excellent growth in profitability, driven by strong growth in written premium, investment income, and a material uplift in new business growth. This has enabled us to pass on the benefits to our customers by reviewing upward the interest we pay on the funds they invest with us,” said Kenindia Assurance MD Inderjeet Singh.
“Premiums have continued to grow due to new business underwritten, the introduction of new products and enhanced business relationships with brokers and agents. Coupled with a good track record of claim settlement, policyholders have continued to give us more business,” he added.
2018 was a tough year for Kenya's insurance sector, with almost all listed insurance firms reporting a loss or drop in profit .
