- The Insurance Regulatory Authority (IRA) has noted that Kenya’s insurance industry continued to register improved performance in the first quarter of 2022 compared to previous quarters
- Gross written premiums in the first quarter of 2022 increased by 11% to KSH 88.43 billion from KSH 79.26 billion in the same quarter of 2021
- Total insurance premiums were KSH 53.92 billion. In contrast, the premium claimed by long-term insurers during the period under review reached KSH 34.51 billion
New data from the Insurance Regulatory Authority (IRA) shows that Kenya’s insurance industry continued to register improved performance in the first quarter of 2022 compared to previous quarters.
Data released on August 1, 2022, shows that the gross written premium of Kenyan insurance companies in the first quarter of 2022 increased by 11% to Kshs 88.43 billion from Kshs 79.26 billion in the same quarter of 2021.
For the quarter under review, general insurance premiums stood at KSH 53.92 billion, while premiums written by long-term insurers reached KSH 34.51 billion, an increase of 12.1% compared to 18.6% growth in the previous year .
The health and motor insurance classes maintained their leading position in terms of contributions to the total insurance premiums at 35.9% and 27.5% respectively.
Aviation, Theft and Miscellaneous were the only classes to see premiums drop by 16.1%, 11.0% and 10.6% respectively.
The deposit administration and life insurance classes continue to be the largest contributors to the long-term insurance business, accounting for 34.4% and 25.1%.
According to the report, the underwriting performance of the general insurance business was a loss of KSh 510.20 million, an improvement from the KSh 1.74 billion loss reported in Q1 2021.
The personal accident category generated the highest underwriting income at KSH 712.27 million. In contrast, motor private and medical general insurance classes suffered the highest losses of KSh 1.04 billion and KSh 628.58 million, respectively.
“Insurers’ long-term asset base grew by 12.9% over the period under review to KSH 580.21 billion and consists of KSh 537.83 billion in income-generating investments. Of the total assets, 9.5% (KSH 55.17 billion) was financed through equity,” the report said.
Reinsurers’ business increased by 33.2% to KSh 10.57 billion for the period under review compared to KSh 7.94 billion in the same period last year, resulting in underwriting profits of KSh 517.18 million from losses in KSh 990.23 million for the first quarter of 2021.
The asset base of the insurance industry grew by 10.5% to Sh876.58 billion at the end of the first quarter of 2022 from Sh793.24 billion at the end of the first quarter of 2021.
A significant portion of total assets, KSH 753.70 billion (86.0%), was invested in income generating investments. The asset classes with the largest share above 5% were; government securities (69.7%), investment real estate (11.2%) and time deposits (7.6%).
Kenya’s private sector improved in August, but confidence continues to fall
“Total equity increased by 5.9% to Sh176.48 billion at the end of Q1 2022 (Q1 2021: Sh166.68 billion). Key components of shareholders’ equity were retained earnings of 35.8%, paid-in capital of 33.0% and statutory reserves of 16.8%,” the report said.
In a related story, shareholders of Jubilee Holdings Limited approved a final dividend of KSh 13.0 per share, bringing the total dividend payout to KSh 14.0 (including a special dividend of KSh 5.0).
The payout follows exceptional results posted in 2021 where gross profit reached KSH 8.4 billion after a 66% increase from the KSH 5.1 billion reported in 2020.
According to the regional insurer, the figures were achieved despite an increase in medical and life claims related to COVID-19 cases, which was partly driven by gains from the sale of controlling stakes in the general business in Kenya and Uganda, which were completed. last year. The company retains a 34 percent stake in both companies.
For the period under review, Jubilee’s gross written premium reached KSH 38.8 billion, an increase of KSH 825 million. The growth, despite losses in the general insurance business in Kenya and Uganda, was driven by good performance in the health and life insurance businesses, which grew by KSH 1.4 billion and KSH 1.2 billion respectively.
The group’s total assets increased by KSh 9 billion to KSh 155 billion from KSh 146 billion in 2020, the largest in the industry.
During the company’s annual general meeting, Jubilee Holdings Limited Chairman Nizar Juma said the performance was supported by tight cost controls and improved return on investment, which enabled Jubilee to strengthen its industry leadership position.
The life insurance business in East Africa is experiencing growth
