Non-life assets up 19pc

HARARE - Non-life insurers’ total assets grew 19,2 percent from $197,43 million as at December 31, 2016 to close 2017 at $235,42 million buoyed by good fortunes on the local bourse, official data revealed.

In its report for the 12 months to December 31, 2017, the Insurance and Pensions Commission (Ipec) said the good fortune recorded on the Zimbabwe Stock Exchange last year was predominantly responsible for the asset base increase.

“Largely buoyed by the Bull Run in the stock market, total assets for non-life insurers grew from $197,43 million as at 31 December 2016 to the current $235,42 million. Insurers are required to abide by our investment guidelines in order to sustain their capacity to liquidate their contractual obligations on time,” Ipec said.

Meanwhile, during the year under review, the non-life industry recorded growth and resilience despite the challenging environmental pressures.

Non-life insurers reported total gross premium written (GPW) amounting to $236,47 million for the 12 months ended December 31, 2017 compared to $215,97 million reported during the same period in 2016 resulting in a 9,49 percent growth.

“In addition, 16 out of 20 insurers were compliant with the minimum capital level of $2,5 million, while four insurers reported capital levels below the required minimum in line with Statutory Instrument 95 of 2017.

“Accordingly, the Commission shall continue to engage such non-compliant player to ensure parity with the law as well as carrying out capital verification exercises in our various onsite inspections,” the regulator said.

The industry average prescribed assets ratio for the non-life insurance companies as at close of 2017 was 10,02 percent which was largely compliant with the minimum requirement of five percent.

Ipec has also has engaged the non-compliant players with a view to enforce consistency with Statutory Instrument 26 of 2016.

For the year ended December 31, 2017, insurance brokers wrote $97,2 million in premium income. The business written by insurance brokers was 7,96 percent higher than the $90,06 million reported for prior comparable period. Insurance brokers recorded $14,36 million net brokerage commission since January 1, 2017.

“Compared to the same period in 2016, this was a decrease of 6,44 percent from $15,34 million reported in 2016. The volume of business written by non-life reinsurers grew by 7,86 percent from $99,93 million reported in the comparative period last year to the current $107,86 million which has largely been attributable to improved use of ICT systems in the collection of motor insurance premiums,” the watchdog organisation said.

Reinsurance brokers reported $74,31 million in gross premium for the year under review, reflecting a decrease of 8,44 percent from the $81,16 million reported for the year ended December 31, 2016.

— The Financial Gazette


Comments (1)

Growth in assets simply because we are now talking mabondi money and not the real mcoy USD comrades

ace mukadota - 6 July 2018

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