A surge in demand for long-term insurance products propelled a 13.4 per cent growth in premiums to Sh109 billion in the six months June compared to a similar period in 2016, new data by the industry regulator showed.
Total premiums in the life insurance business segment grew by 20.7 per cent in the period to hit Sh41.1 billion, up from Sh32.6 billion recorded in a similar window last year, the Insurance Regulatory Authority (IRA) said in an industry update for the second quarter of 2017.
“However, the general business sector contributed the largest portion of insurance premium at 62.3 per cent of the total industry premium,” IRA said.
The general business category grew by 5.9 per cent during the period under review contributing Sh67.9 billion in premiums compared to Sh63.9 billion reported in the six months to June 2016.
Reinsurers reported premium income of Sh10.13 billion during the first six months of 2017, IRA data showed. This was a growth of 6.5 per cent from the Sh9.50 billion reported by the end of June 2016.
The gross premium income reported under the life reinsurance business amounted to Sh1.60 billion, while that under general reinsurance business was Sh8.53 billion, the IRA data showed.
There are three locally incorporated reinsurers including Kenya Reinsurance Corporation, East Africa Reinsurance Company and Continental Reinsurance. There are also two regional reinsurers; Africa Reinsurance Corporation and PTA Reinsurance (Zep Re).
The insurance industry’s asset base increased by 12.5 per cent to Sh564.38 billion as at the end of June, up from Sh501.65 billion held at the end of June 2016.
The regulator said 79.8 per cent or Sh450.67 billion of these assets were held in income generating investments.
The total insurance industry’s liabilities grew by 14.7 per cent to Sh423.13 billion from Sh368.97 billion registered in the corresponding period of 2016.
In the life business segment, total assets grew by 13.3 per cent to Sh329.8 billion compared to Sh285.8 billion in the first half of 2016.
In the general business sector, total assets grew by eight per cent contributing Sh183.8 billion in first half of 2017 from Sh169.1 billion recorded during the same period last year.