Life assurance premium income dropped by 6 percent to $81.4 million in the first quarter to March from $88.1 million reported in the same period last year, the latest report by the Insurance and Pension Commission (IPEC) shows.
The regulator expressed concern over the concentration of premium income on the industry’s big four players.
“For the period ending 31 March 2017, four players namely FML, Old Mutual, Zimnat and Nyaradzo have a combined market share of 88 percent, making our industry more of an oligopoly,” IPEC said.
Claims fell to $44 million from $47 million previously but total costs grew by 2 percent to $68 million due to higher administration expenses.
The sector recorded an aggregate net profit of $14 million, down 33 percent from $21 million in the comparative period last year on high business expenses.
Total assets increased by 10 percent to $1.66 billion from $1.5 billion in the same period last year due to investments in equities and prescribed assets.
Equities and properties constituted 62 percent of the industry total assets
The prescribed assets ratio was 14 percent as at March 31, 2017 against a minimum statutory requirement of 7.5 percent.-The Source