BY FIDELITY MHLANGA
NON-life insurers reported total Gross Premium Written (GPW) amounting to $131,59 million for the quarter ended March 31, 2019, reflecting a 74,73% increase from $75,31 million reported for the comparative period in 2018 driven by inflation, a report from the insurance regulator has shown.
This is mainly attributed to inflationary pressures, owing to progressive efforts by government to introduce the mono-currency system.
According to the Insurance Pensions Commission (Ipec), fire, miscellaneous accident and motor remained the dominant classes of business for the quarter ended
March 31, 2019. The three classes of business constituted 80,89% of the overall business written for this quarter.
“The increase in gross premium written is attributable to business generated from motor insurance as well as fire insurance classes. The two classes of business remained the major sources of business as they accounted for $96,30 million of the total GPW of $131,59 million, translating to 73,18% of the total
GPW for the quarter under review,” Ipec said.
In addition, a total of 16 out of 18 insurers were compliant with the minimum capital level of $2,5 million.
“The volume of business written by non-life reinsurers rose by 83.45% from $33,05 million as at 31 March 2018 to $60,63 million as at March 31, 2019. The increase in GPW for the comparative period was attributed to increased fronting arrangements of business by direct non-life companies in business classes such as fire, marine and motor insurance classes,” Ipec said.
Total profit after tax reported for non-life insurers for the quarter ended March 31, 2019 was $10,34 million reflecting a major increase from the −$0,329 million reported in the comparative period in 2018. The key driver was the increase in GPW and other income which grew by 74,73% and 608,33%, respectively.
Other related income streams like investment income declined by over 500% during the period under review.
Total cash and near cash assets in the form of money market and short-term prescribed assets decreased from $103,63 million as at December 30, 2018 to $94,77
million as at March 31, 2019.
Such a movement was mainly attributed to decreases in cash and cash equivalents from $55,66 million as at December 31, 2018 to $49,49 million in the period
under review. The acid test ratio for individual insurers as at March 31, 2019 ranged from 1,89% to 1,303.59%.
Total assets for non-life insurers grew from $350,64 million as at December 30, 2018 to $393,95 million as at March 31, 2019. The growth is attributable to
upward revaluations in the value of asset.
However, premium debtors remained one of the major contributors to the non-life insurance total assets.
There were 756 registered entities/persons in the non-life insurance industry as at March 31, 2019. These include insurance companies, microinsurers,
reinsurance companies, underwriting management agencies, insurance brokers, reinsurance brokers, loss assessors, corporate agents and sole agents.