Life assurers reported a 9 percent decline in profit to $33 million in the quarter to June from $37 million in the comparable period last year on increased operating expenses.
Net premiums fell 1.7 percent to $174 million in the second quarter to June from $177 million recorded in the same period last year.
Total costs increased by 8 percent to $152 million due to increased operating expenses and commissions.
The regulator, Insurance and Pension Commission (IPEC) encouraged players to implement cost containment initiatives.
“In the light of a challenging investment climate, the Commission encourages prudent cost cutting measures (effective cost rationalization measures) on the part of players to safeguard sustainability of the pools together with the profitability of the business,” IPEC said.
Total assets increased by 28 percent to $1.91 billion from $1.49 billion in the comparable quarter last year on increased uptake of equities and new capital injection by some companies, IPEC said.
The average prudential liquidity ratio stood at 342 percent as at June , against a prescribed one of above 100 percent.
“Life Insurance institutions maintained high liquidity buffers during the quarter partly reflecting a cautious approach in meeting claims,” IPEC said.
Life companies prescribed asset ratio increased to 15 percent from 11 percent recorded in the comparable period last year.
Altfin Life Assurance remained under liquidation since the beginning of the year, IPEC said.
All operating life assurance companies were compliant with the prescribed minimum capital requirement of $2 million in the quarter under analysis.-The Source