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Walter Muchinguri Assistant Business Editor
The total gross premium written by non-life insurers for the quarter ended March 31, 2015 declined by 0,44 percent to $70.89 million from $71,21 million reported in the comparative period last year.
Gross premium written amounting to $26,73 million was generated by insurance brokers while non-life reinsurers reported business worth $28,82 million during the quarter under review compared to $28 million for the same quarter last year.
Reinsurance brokers generated business worth $18,91 million on behalf of reinsurers.
According to the Insurance and Pensions Commission (IPEC) short-term (non-life) insurance report for the first quarter of the year, motor and fire insurance remained the dominant classes of insurance in the non-life insurance sector.
The two business classes accounted for a total of 62,79 percent of total gross premium written for the quarter under review compared to 62,86 percent reported in the comparative period in 2014.
“Notably the largest class of business i.e. fire insurance, recorded a decrease in gross premium written.
“This may be an indication that, the number of uninsured vehicles increased or migrated from comprehensive to third party insurance. It may also imply that there was increased undercutting of rates,” IPEC said.
Total assets for the non-life insurance sector amounted to $364,46 million compared to $329,9 million reported as at December 31, 2014.
The increase in total assets was mainly driven by an increase in premium debtors. The industry average prescribed assets ratio for non-life insurers was 1,39 percent.
Non-life reinsurers, on the other hand, reported an industry average prescribed assets ratio of 2,96 percent during the period under review.
“There were no significant changes in the profitability of both direct non-life insurers and reinsurers with marginal changes being witnessed in the return on equity and return on assets during the quarter under review,” IPEC said.
During the period under review Altfin Insurance Company was de-registered while Export Credit Guarantee Corporation (ECGC) and two more insurers, Global Insurance Company and KMFS Insurance Company as well as one reinsurer New Reinsurance Company of Harare respectively were suspended from initiating as well as renewing business.
Excellence Insurance Company was also suspended from initiating and renewing business.
Meanwhile the number of registered insurance brokers during the period under review was 32 following the registration of Nationwide Insurance Brokers.
Excel Risk Solutions, Navistar Insurance Brokers, and Revival Insurance brokers were not operational as at March 31, 2015.
“However, as at the time of finalising this report, Nationwide Insurance Brokers had commenced operations after conduct of a pre-opening inspection which determined that the broker was ready to start operating,” IPEC said.
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