Non-life insurers post $7m profit

Business Reporter
Non-Life insurers posted a profit of $6,88 million for the first six months of 2016, which is an increase from $5, 23 million of the same period last year.

The increase in profit after tax for the period was on the back of decreasing operating expenses and net incurred claims.

Owing to the prevailing economic challenges, the volume of business written by non-life insurers in terms of total gross premium written decreased by 4,97 percent to $114,33 million for the half year ended June 30, 2016, from $120 million of the same period last year.

According to the first half non-life report released by the Insurance and Pension Commission, gross premium written amounting to $50 million was generated through insurance brokers.

Although business written by non-life reinsurers from the local market decreased significantly during the same period under review, growth in business written from outside Zimbabwe grew resulting in negligible changes in total gross premium to $60,07 million from $60,18 of the same period last year.

IPEC said business generated by reinsurance brokers during the period amounted to $38 million while motor and fire insurance remained the dominant classes of insurance in the non-life insurance sector.

“Only two underwriters reported capital positions which were below the minimum regulatory requirement as at 30 June 2016,” said IPEC.

Non-life reinsurers posted a total profit after tax of $4,72 million from $3,40 million recorded during the same period last year.

IPEC said total assets for the insurance industry amounted to $391 million in 2015 from $390 million reported during the six months currently under review.