ZIMBABWE’S non-life insurers recorded an increase of 8,71% in Gross Premium Written (GPW) to $153,4 million for the third quarter ended September 30, 2013 mainly driven by motor and fire Insurance.
Gross premium written for the period ended September 30, 2012 was $141 million.
According to the Insurance and Pension Commission (IPEC) third quarter report for non-life insurance players, the increase in GPW was mainly driven by changes in business generated from fire insurance which amounted to $7, 12 million and $3, 96 million respectively.
“Notwithstanding the continued upward trend, the volume of business grew at a slower rate during the period under review compared to earlier years after the introduction of the multicurrency regime in 2009,” IPEC said in the report.
In the period under review, the total gross premium written by direct non-life insurers amounted to $72,62 million was generated through insurance brokers while total premium amounting to $78,39 million was ceded to non-life reinsurers during the period ended September 30, 2013 compared to $69,51 million ceded in the comparative period in 2012.
IPEC said the growth rate in GPW for the nine months ended 30 September slowed down from 39,62% in 2011, 21.60% in 2012 and 8,71% in 2013.
“This may imply that the short term insurance industry is approaching its maturity phase after adoption of the multicurrency regime,” Ipec said.
Total profit after tax for non-life insurers and reinsurers amounted to $10, 50 million and $6,50 million respectively for the period ended 30 September2013.
“Both non-life insurers and reinsurers reported phenomenal growth rates in profit after tax.
“On the other hand, insurance and reinsurance brokers reported profits amounting to $0,96 million and $0,62 million respectively,” the report said.
During the period under review reinsurance premium increased by 5, 81% to $72,6 million from $68,6 million in 2012.
Net premium written increased by 11,45% to $80,8 million for the third quarter ended September 30 2013 while Net earned premiums grew by 58,57% to $77,6 million from $48,9 million in 2012.
“The growth in net earned premium of 58,57% is not in line with the growth in the volume of business retained on the non-life insurers’ books,” read the report.