91% LOCAL REINSURANCE PROFITS FOREIGN OWNED

MBABANE - The reinsurance industry in Eswatini is dominated by foreign companies, mostly from South Africa.

According to the Financial Services Regulatory Authority (FSRA) annual report, the local market generated E385 million in reinsurance premium. Of this, only nine per cent, a figure of E35 million, was placed locally. FSRA said there was a notable year on year increase in Gross Written Premiums (GWP) of five per cent from E506 million to E530 million. Quarter on quarter GWP increased by 50 per cent from E267 million. The top four classes of insurance business collectively contributed to 66 per cent of the GWP amounting to E350 million.

Central Bank of Eswatini governor Dr Phil Mnisi in the financial stability report issue six said, “Assets of the insurance industry amounted to E6.6 billion at the end of June 2022 from E6.3 billion in June 2021. This increase in total industry assets was driven by growth in assets for the short-term sector of 15.6 per cent and growth of 6.3 per cent for the long-term insurance sector.” The governor mentioned that value of insurers’ assets had been on an upward trend since the first quarter of 2021, even attaining levels above those recorded prior to the COVID-19 pandemic.

Contracted

Mnisi added that investment income contracted over the year ended June 2022. He said the sector’s investment income recorded a loss of E79.1 million from a surplus of E318.8 million recorded in June 2021. “This decline in investment income was observed for both sectors but was more pronounced in the long-term insurance sector (-130.8 per cent),” he said. The above mentioned further prompted government and the private sector to create and promote locally owned insurance companies.

Post your comment

Your name:

Your e-mail address:

Add your comments:

Please enter the code you see in the image:

Image:

Code: