Kenya’s Insurance Regulatory Authority (IRA) has released half year 2016 insurance statistics with industry gross premiums growing by 9.2% compared to 15.3% growth recorded in half year 2015. However, on quarter on quarter basis, growth in gross premiums dropped by a massive 25.4%, the slowest growth in five years.
The sector’s Profit Before Tax for the period grew by 12.4% with long-term business profits which include investment income recording a growth of 32.3%. Short-term insurance business grew 8.98% compared to a growth of 14.1% in half year 2015 and 20.4% in half year 2014. Short- term business continues to be dominant, at 66.2% of total gross premiums a slight change from the 66.4% in half year. The life insurance business growth also slowed down, growing at 9.62% compared to a growth of 17.9% in half year 2015.
Over this period,market value of Britam and CIC Insurance at the Nairobi Securities Exchange dropped from 7.3% and 7.1% in half year 2015 to 5.5% and 6.46% in half year 2016 respectively. Highlighting increasing competition, listed companies share of total gross premiums in long-term segment stood at 57.7% compared to 70.9% in 2011.
Britam has the largest market share in the long-term business particularly in ordinary life segment-stood which stands at 38.95% as at June 2016.
(SIB, Kenyan Wallstreet)
