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Insurance industry earnings grow by 3.8%

Insurance sector earnings increased by 3.8% points in quarter 1 of this year to 3.2 % from 0.6% in the same period last year.

The industry premiums grew by 5.7% compared to a decline of 8.2%  last year while claims remained flat on a weighted average basis according to Cytonn Investments h1’2019 Kenya listed insurance report.

The loss ratio across the sector decreased to 77.2% in h1’2019, from 84.2%, attributed to the introduction of tough measures by market players to reduce fraudulent claims.

The expense ratio, on the other hand, decreased to 49.1% from 60.2% last year, owing to a decrease in operating expenses through cost rationalization and awareness.

On average, the insurance sector recorded a return on average equity of 5.7%, an increase from 3.9% in h1’2018.

Jubilee holdings took the top position, ranking top in the franchise score category, Sanlam Kenya took 2nd position, on the back of a strong franchise score, driven by the highest return on average equity, and, liberty & Britam holdings came in 3rd and 4th position, respectively, with weaker franchise scores, as a result of lower returns on assets and equity.

CIC came in 5th position on the back of weak franchise rankings scores.

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