Insurance assets hit Sh1 trillion on improved income in Q1, 2023

Insurance Industry gross premium income grew by 14.8%  in the first three months of the year, rising to KES 104.5 billion compared to KES 88.4 billion in the same quarter last year.

Insurance Regulatory Authority (IRA) performance statistics for the first quarter of the year attributes the growth to the continued economic recovery from the negative effect of COVID-19 in 2020 and 2021.

The income has been rising for the past three years, rising from a five year low of KES79.3 billion in Q1, 2021.

Long term insurance business premiums amounted to KES 38.97 billion accounting for 38.4% of the total industry premium while general business premiums amounted to KES 62.52 billion (61.6 %).

This is an improvement compared to KES 34.5 billion registered in a similar period last year, which represented 18.6% of sector premiums.  The amount was lower, at KES30.7 billion or 12.1% of total industry earnings in a similar quarter in 2021.

Investment income (revenue account, and profit and loss account) under long-term insurance business increased to KES 14.38 billion during the quarter under review compared to KES 9 billion.

The general insurance business recorded an investment income of KES 2.98 billion during the period compared to KES 2.5 billion last year.

Under general insurance business, Workmen’s Compensation gross premium income had the highest growth of 64.1% from KES 3.19 billion reported in Q1 2022 to KES 5.23 billion reported in Q1 2023.

Personal Accident had the largest decline from KES 1.07 billion recorded in Q1 2022 to KES 972.67 million in Q1 2023.

The high premium volume classes of general insurance business contributed the largest proportions of incurred claims, that is, medical KES 8.72 billion (40.5 %), motor commercial KES 5.29 billion (24.6%) and motor private KES 4.99 billion (23.2 %).

Medical, motor private and motor commercial continued to dominate claims accounting for 40.9 % (KES 8.25 billion), 24.9% (KES 5.02 billion) and 23.1% (KES 4.65 billion) respectively of total industry paid claims under general insurance business.

The underwriting performance of the general insurance business reported a loss of KES 2.01 billion which was a decline of 294.7% from a loss of KES 510.20 million reported in Q1 2022.

However, the general reinsurers underwriting performance recorded a profit of KES 487.8 million, having dropped KES 517.18 million in the corresponding quarter last year.