Categories: Stories

Profit for Zimbabwe’s non-life insurers shoots up 60 percent in three months

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

(31 VIEWS)

This post was last modified on %s = human-readable time difference 7:34 am

Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

Recent Posts

Can the ZiG sustain its rally against the US dollar?

Zimbabwe’s battered currency, the Zimbabwe Gold, which was under attack until the central bank devalued…

November 10, 2024

Will Mnangagwa go against the trend in the region?

Plans by the ruling Zimbabwe African National Union-Patriotic Front to push President Emmerson Mnangagwa to…

October 22, 2024

The Zimbabwe government and not saboteurs sabotaging ZiG

The Zimbabwe government’s insatiable demand for money to satisfy its own needs, which has exceeded…

October 20, 2024

The Zimbabwe Gold will regain its value if the government does this…

Economist Eddie Cross says the Zimbabwe Gold (ZiG) will regain its value if the government…

October 16, 2024

Is Harare the least democratic province in Zimbabwe?

Zimbabwe’s capital, Harare, which is a metropolitan province, is the least democratic province in the…

October 11, 2024

Zimbabweans against extension of presidential term in office

Nearly 80% of Zimbabweans are against the extension of the president’s term in office, according…

October 11, 2024