Profit after tax for non-life insurers more than trebled to $33,63 million in 2017 from the previous year aided by a growth in gross premium written (GPW) and investment income, a new report by the industry’s regulator has shown.
BY BUSINESS REPORTER
In 2016, profit after tax for non-life insurers was $13,40 million.
According to a 2017 fourth quarter report by the Insurance and Pensions Commission (Ipec), GPW grew by 9,49% to $236,47 million driven by motor and fire classes that accounted for 63,80% of the total gross premium written during the period under review.
Investment income shot up by 47,60% to $5 389 465 in 2017.
Ipec said 16 out of 20 insurers were compliant with the minimum capital level of $2,5 million.
“The reported capital positions were computed without accounting for the dictates of Statutory Instrument 95 of 2017 which deals with non-admissible assets. Currently, the commission is in the process of checking compliance of Statutory Instrument 95 of 2017 by regulated entities through physical on-site inspections,” Ipec said.
“Compliance with minimum capital levels is a solvency indicator for insurers which gives additional cushion to policyholder funds.”
Total assets for non-life insurers grew by 19,24% to $235,42 million in the period under review from $197,43 million in 2016 mainly due to a bull-run in equity investments, fixed assets revaluations and premium receivables which constituted 16,82%, 15,04% and 19,24% of the total assets respectively.
Ipec said premium debtors remained a huge challenge to the insurance players encouraging institutions to devise effective credit control mechanisms as well as designing affordable products in order to manage the increasing debtors’ book.