The third quarter of (Q3) 2022 saw an increase in insurance industry premiums of 11.4%, from KES 213.53 billion to KES 237.90 billion.
According to the Insurance Industry Report for the months of July to September 2022, the expansion is due to the economy’s ongoing recovery from COVID-19’s detrimental effects in 2020 and 2021.
The KES 103.49 billion in long-term insurance business premiums represented 43.5% of the entire industry premium, while the KES 134.41 billion in general business premiums represented 56.5%.
Under general insurance, the growth in fire industrial gross premium revenue, which increased by 30.9% from KES 11.55 billion in Q3 2021 to KES 15.12 billion in Q3 2022, was the largest.
The biggest decrease was in personal accidents, from KES 2.12 billion in Q3 2021 to KES 2.02 billion in Q3 2022.
General insurance’s underwriting performance continued to improve, recording a loss of KES 2.26 billion as opposed to the loss of KES 4.13 billion posted in Q3 2021.
The highest underwriting profit was made by the workers’ compensation class, which totaled KES 2.48 billion. The highest underwriting losses were suffered by the motor private, motor commercial, and personal accident classes of general insurance business, which totaled KES 2.89 billion, KES 1.75 billion, and KES 868.74 million, respectively.
The report states that “at the conclusion of Q3 2022, the total Gross Premium Income (GPI) reported under the long-term insurance business amounted to KES 103.49 billion (Q3 2021: 92.12 billion), reflecting an increase of 12.3% compared to a growth of 24.0% in Q3 2021.”
The classes of Deposit Administration and Life Assurance continued to make up the majority of the long-term insurance company GPI, contributing respectively 36.3% and 25.2%.
A deficit of KES 245.80 million in Q3 2021 was greatly improved to a profit of KES 1.26 billion in Q3 2022 thanks to the reinsurers’ business volume, which rose by 29.1% to KES 28.06 billion (Q3 2021: KES 21.73 billion).
The insurance sector’s earnings before taxes increased by 3% to KES 9.06 billion in Q3, 2021, from KES 8.79 billion.
From KES 836.11 billion at the end of Q3 2021 to KES 918.02 billion at the end of Q3 2022, the asset base increased by 9.8%. Eighty-five six percent of the total assets, or KES 805.42 billion, were kept in income-producing investments.
