Non-life insurers reported a 60 percent increase in after tax profit from $2.39 million to $3.83 million in the quarter to March, driven by an increase in gross premiums written (GPW) and a reduction in operational expenses, a report by the industry regulator has shown.
GPW by non-life insurers increased from $66.59 million to $68.22 million in the first quarter to March while business written by reinsurers decreased from $35.52 million last year to $32.60 million in the quarter under review.
Non-life reinsurers reported a profit after tax of $3.03 million in the quarter to March, which is a decrease from $3.82 million reported for the same quarter last year.
“The business generated by non-life insurers during the quarter ended 31 March 2017 was largely skewed towards two business classes which are motor and fire insurance, generating 63.74 percent of total gross premium written”.
Insurance brokers generated $24.09 million of the gross premium for the quarter, a 2 percent decline from the $24.59 million written in the same quarter last year.
Reinsurance brokers contributed 53 percent of the reinsurer’s total premiums, writing $17.18 million.
Of the 20 operational insurers and 8 operational reinsurers, only one player, Colonnade Reinsurance, reported a capital position below the regulatory minimum requirement of $1.5 million as at 31 March 2017.
As at 31March 2017, 11 of the insurers were already compliant with the proposed $2.5 million capital level.
The asset base for the insurance industry increased from $390.30 million last year to $409.62 million in the quarter to March 2017.
The industry average prescribed assets ratios for non-life insurers and reinsurers were 12.3 percent and 13.64 percent respectively.- The Source