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.