Directline Assurance posts Sh120m profit as premiums increase
An accident scene. Directline Assurance, which mostly covers public service vehicles, private and commercial motor vehicles, has made a Sh119.8 million net profit for the year ended December 2021. FILE PHOTO | NMG
The performance was driven by higher premiums and investment income, with claims also remaining flat for the company that offers covers to public service vehicles (PSVs) as one of its major business lines.
The company’s net premiums rose to Sh3.3 billion in the review period compared to Sh2.6 billion the year before.
Investment income nearly quadrupled to Sh307.7 million after the company increased its “other investments” 2.5 times to Sh2 billion.
Directline Assurance Company made a Sh119.8 million net profit for the year ended December 2021, reversing a net loss of Sh345.7 million a year earlier.
The performance was driven by higher premiums and investment income, with claims also remaining flat for the company that offers covers to public service vehicles (PSVs) as one of its major business lines.
“The board of directors is pleased with the results and management’s efforts in turning around the business. We have already seen tremendous growth in our first quarter of 2022 results in comparison to the same time last year,” Directline’s chairman Julius Orenge said in a statement.
The company’s net premiums rose to Sh3.3 billion in the review period compared to Sh2.6 billion the year before. Investment income nearly quadrupled to Sh307.7 million after the company increased its “other investments” 2.5 times to Sh2 billion. Insurers have gained from rising interest rates on government bonds and T-bills and a rise in prices of listed equities last year compared to 2020.
The company’s claims declined marginally to Sh2.1 billion.
“The company paid up 82 percent of all claims emanating from the Motor PSV class in the industry thus cementing its position as market leaders in that specific class of business,” the insurer said in a statement.
The company’s insurance products include third-party and comprehensive policies for PSVs with seating capacities of between eight and 105.
Commissions paid to brokers grew to Sh334 million from Sh280 on what the insurer attributed to increased product uptake and growth in number of intermediaries.
