•Re-insurer Kenya on the other hand reported a marginal increase in profit from Sh2.94 billion in 2020, to Sh2.96 billion.
•Jubilee Holdings reported a profit of Sh6.8 billion from Sh4 million in 2020.
Image: FILE
CIC Group has posted a Sh55million loss on its life assurance business for the year ended December 2021 , as claims hit Sh3.8billion, from Sh3.1 billion previous year.
This is from a Sh60.2 million profit reported for the segment in 2020.
Total benefits , claims and other expenses increased to Sh5.7 billion up from Sh4.7 billion, reflecting costs that dented underwriters' balance sheets during the Covid-19 pandemic.
Its general insurance business however saw its profit grow tramendsously to Sh463.3 million, from Sh15.6 million previous year.
This was bouyed by growth in written premiums and cost management which saw net income close the year at Sh1.6 billion, up from Sh1.1 billion.
Jubilee Holdings on the other hand reported a profit of Sh6.8 billion from Sh4 million in 2020.
The group's net insurance premium revenue increased to Sh21.9 billion from Sh20.1 billion the previous year.
Re-insurer Kenya on the other hand reported a marginal increase in profit from Sh2.94 billion in 2020, to Sh2.96 billion.
Gross written premiums grew 10 per cent to Sh20.4 billion, from Sh18.5 billion.
Net earned premiums however reduced to Sh19.1 billion from Sh20.8 billion.
"Investment income decreased by four per cent from Sh3.79 billion to Sh3.65 billion in 2021, due to the effects of Covid-19 pandemic in the investment environment," the company notes in its financial statement published on Thursday.
Claims incurred were high but a reduction to Sh11.4 billion from Sh13.5 billion the previous year.
Another player that recorded mixed performance was Old Mutual , whose investment business had a drop in profit to Sh94.7 million.
This is from Sh149.8 million registered a year earlier.
High claims dented gains made in the insurance sector in quarter four of 2021, data the Insurance Regulatory Authority (IRA) shows, as underwriters navigated through the Covid-19 pandemic.
While industry premiums in the fourth grew by 18.5 per cent to hit Sh276.06 billion, up from Sh232.95 billion recorded in the same period in 2020, the sector recorded an increase in claims and policyholders’ benefits that saw losses deepen mainly in the general insurance business.
This segment recorded a loss of Sh6.34 billion, compared to Sh1.18 billion in Q4 2020.
This was mainly attributed to high increase in underwriting loss in motor vehicle classes due to relaxation of restrictions that had been imposed on travel due to Covid-19 pandemic.
Motor private made an underwriting loss of Sh6.17 billion while motor commercial posted an underwriting loss of Sh3.32 billion.
The growth in premium on the other hand 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%).
The industry paid claims amounting to about Sh164.1 billion, cutting across long-term insurance business (Sh81 billion up from Sh67.8 billion), general insurance (Sh70.1 billion up from Sh57.4 billion) and general reinsurance, which paid Sh13.8 billion in claims.
Medial accounted for 38.5 per cent of claims, motor private (27.7%) while motor commercial accounted for 22.8 per cent, forming the top three segments that hit insurance companies