Categories: Stories

Zimbabwe’s life insurance industry more of an oligopoly

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

(480 VIEWS)

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

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

Zimbabwe government biggest loser when there is a discrepancy in the exchange rate

The government is the biggest loser when there is a discrepancy between the official exchange…

October 10, 2024