Companies

UAP beats CIC to claim top spot in general insurance

uap towers

The UAP-Old Mutual Tower in Nairobi. PHOTO | COURTESY

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Summary

  • Latest data from the Insurance Regulatory Authority (IRA) shows that UAP closed last June with a market share of 8.3 percent, climbing from the fourth position it occupied in previous similar period.
  • The jump in market share was from 7.1 percent it had in June 2019 and came on the back of UAP’s gross written premium growing by 17 percent to Sh6.05 billion.
  • CIC market share dropped from 8.3 percent to 8.1 percent as that of APA retreated from 7.4 percent to 7.2 percent.

UAP Insurance Company has overtaken CIC #ticker:CIC and APA insurance firms to become the top general insurer as measured by the amount of gross written premiums.

Latest data from the Insurance Regulatory Authority (IRA) shows that UAP closed last June with a market share of 8.3 percent, climbing from the fourth position it occupied in previous similar period.

The jump in market share was from 7.1 percent it had in June 2019 and came on the back of UAP’s gross written premium growing by 17 percent to Sh6.05 billion.

CIC market share dropped from 8.3 percent to 8.1 percent as that of APA retreated from 7.4 percent to 7.2 percent.

During the period, overall premiums for general insurers increased marginally by 0.2 percent to Sh73.18 billion, meaning that UAP outpaced the industry in the rate of growing premiums.

The medical and motor insurance classes accounted for 36.2 percent and 30.8 percent respectively of the total premiums.

The general insurance business underwriters reported underwriting profit of Sh62.45 million compared to an underwriting loss of Sh1.26 billion reported in the previous similar half year.

Meanwhile, Britam Life maintained the lead in the long-term insurance despite its market share shrinking from 24.7 percent to 23.96 percent.

ICEA Lion Life Assurance beat Jubilee to the second spot with a market share of 14.68 percent, a rise from 13.8 percent in June 2019.

Completing the top five spots in long term insurance were Jubilee (13.35 percent), CIC (6.45 percent) and Kenindia with a market share of 6.07 percent.

Kenya’s long-term insurance segment is dominated by a few players, with the top seven firms commanding a market share of 74.9 percent while the rest of 18 companies share 25.1 percent.

IRA report shows that general insurance business remained the largest contributor to industry insurance premium (60.5 percent).

The report comes at a time Deloitte report is warning of muted growth in premiums as firms and individuals cut spending on increased economic hardships and service mistrust in Covid-19 era.