The insurance industry in Kenya has recorded an increase in the premiums underwritten between April and June 2019.
The premiums underwritten during this period amounted to Ksh117.28 billion (US$1.13 billion), a 4.4 per cent increase from Ksh112.39 billion (US$1.08 billion) recorded over the same period in 2018.
The Insurance Regulatory Authority (IRA) has attributed this development largely to a 2.9 per cent growth recorded by the general business segment and 6.9 per cent by the long term insurance business segment.
“The increase in general business was mainly contributed by medical and motor private insurance classes of business which accounted for 66.8 per cent of the gross premium income,” IRA notes in its latest (Q2) industry report.
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During the same period, the claims incurred amounted to Ksh28.84 billion. This was a decrease of 1.3 per cent from the Ksh29.21 billion reported at the same time in 2018.
“Medical insurance, motor private and motor commercial were the largest contributors to the claims incurred,” the market regulator notes.
The three accounted for 33.6 per cent,27.9 per cent and 25.1 per cent of claims respectively.
According to the IRA 2019 second quarter report, investors’ equity funds grew by 4.0 per cent to stand at Ksh157.83 billion as at the end of june 2019, from Ksh151.78 billion reported in the same period of 2018.
The shareholders’ fund comprised of retained earnings at 39.3 per cent, share capital at 29.4 per cent, statutory reserves at 14.7 per cent, revaluation reserves at 2.6 per cent and share premium at 5.4 per cent.
The total value of the industry assets during the period grew by 7.6 per cent to Ksh672.13 billion from Ksh624.59 billion held as at the end of June 2018. 82.8 per cent (Ksh.556.32 billion) of these assets were held in income generating investments.
Investments by the insurers and reinsurers grew by 9.1 per cent to Ksh556.32 billion from Ksh 509.69 billion held as at the end of June 2018.
“Asset classes with the highest proportions of above five per cent were; government securities (60.0%), investment property (15.0%), term deposits (9.3%) and listed equities (7.0%),” IRA states in its report.