Insurance industry premiums increased by 11.4 per cent to hit Sh237.9 billion in the third quarter of 2022, buoyed by continued post Covi-19 economic recovery.
This is up from Sh213.53 billion in Q3 2021.
The sector's quarterly report by the Insurance Regulatory (IRA), for the period July - September 2022, indicates long term insurance business premiums stood at Sh103.49 billion, accounting for 43.5 per cent of the total industry premium.
General business premiums amounted to Sh134.41 billion (56.5%).
Under general insurance business, fire industrial gross premium income had the highest growth of 30.9 per cent, from Sh11.55 billion reported in a similar period in 2021, to Sh15.12 billion.
Personal accident had the largest decline from Sh2.12 billion recorded in Q3 2021 to Sh2.02 billion in Q3 2022.
The underwriting performance of the general insurance continued to make an improvement recording a loss of Sh2.26 billion, from a loss of Sh4.13 billion reported in Q3 2021.
Workmen’s compensation class made the highest underwriting profit of Sh2.48 billion.
Motor private, motor commercial and personal accident classes of general insurance business incurred the highest underwriting losses of Sh2.89 billion, Sh1.75 billion and Sh868.74 million, respectively.
The total Gross Premium Income (GPI) reported under long term insurance business by the end of Q3 2022 amounted to Sh103.49 billion (Q3 2021: Sh92.12 billion).
“The growth is attributed to the continued economic recovery from the negative effect of Covid-19 in 2020 and 2021,” IRA notes in a statement.
Deposit Administration and Life Assurance classes remained the biggest contributors to the long-term insurance business GPI, accounting for 36.3 per cent and 25.2 per cent, respectively.
On the other hand, the reinsurers’ business volume increased by 29.1 per cent to Sh 28.06 billion in Q3 2022, up from Sh21.7 billion in Q3 2021.
This came with improved underwriting results from a loss of Sh245.8 million to a profit of Sh1.26 billion.
The insurance industry profit before tax hit Sh9.06 billion a three per cent increase compared to Sh8.79 billion recorded in Q3,2021.
Asset base grew by 9.8 per cent to Sh918.02 billion from Sh836.11billion held at end of Q3 2021.
A significant portion of total assets, Sh805.42 billion (85.6%) were held in income generating investments.
