MBABANE – Lidwala Insurance has overtaken long-time market leader Eswatini Royal Insurance Corporation (ESRIC) to become the largest short-term insurer by gross written premiums (GWP).
This marks one of the biggest competitive shifts in the country’s insurance industry in recent years.
Figures contained in the Financial Services Regulatory Authority’s (FSRA) Non-Banking Financial Institutions (NBFI) Statistical Bulletin for the first quarter of 2026 show that Lidwala accounted for 33.03 per cent of the short-term insurance market based on GWP, edging ahead of ESRIC, whose market share declined to 32.48 per cent following an 8.34 per cent year-on-year contraction in premiums.
Lidwala’s rise to the top came after recording a marginal 0.32 per cent annual increase in its market share, enabling it to displace ESRIC from the number one position in premium generation. The change in rankings reflects intensifying competition in Eswatini’s short-term insurance market at a time when the industry is experiencing strong premium growth and improving underwriting performance.
Oracle Insure retained third place in the market after increasing its share by 4.24 per cent year-on-year to 17.24 per cent, strengthening its position among the country’s leading insurers.
Oracle Health ranked fourth, commanding 10.14 per cent of the market after recording a 4.31 per cent increase in market share over the same period.
Phoenix and United General remained relatively smaller participants, with market shares of 5.73 per cent and 1.67 per cent, respectively. Both companies recorded marginal annual declines of 0.24 per cent and 0.28 per cent.
… property, motor insurance drives short-term insurance’s 19.29% growth
The improved competition among insurers came against the backdrop of robust industry expansion.
According to the FSRA, the short-term insurance sector recorded a 19.29 per cent year-on-year increase in gross written premiums, with total premiums rising from E211.80 million in the first quarter of 2025 to E252.66 million during the corresponding quarter this year.
The regulator attributed the strong growth primarily to higher premiums generated from property and motor insurance. Property insurance premiums increased by 15.18 per cent, while motor insurance premiums grew by 6.09 per cent, with the two classes together accounting for 56.48 per cent of total gross written premiums.
Health insurance and guarantee business also delivered strong performances, recording annual growth of 61.12 per cent and 80.64 per cent, respectively, contributing a combined 23.58 per cent of total industry premiums.
Transportation and liability insurance similarly recorded double-digit improvements of 10.60 per cent and 80.46 per cent, together accounting for 9.84 per cent of total premiums.
Engineering insurance was the only business line to contract during the review period, with premiums declining 1.32 per cent to E7.13 million.
Travel and agricultural insurance both registered healthy growth of 19.46 per cent and 20.40 per cent, although together they contributed less than one per cent of total premiums.
Premiums from legal expenses and workmen’s compensation also increased by 4.93 per cent and an impressive 362.85 per cent, respectively, with their combined value reaching E5.97 million. As business volumes increased, insurers also transferred more risk to reinsurers. Premiums ceded to reinsurers rose 18.82 per cent, increasing from E81.42 million during the first quarter of 2025 to E96.75 million in the current review period.
Despite writing substantially more business, the industry’s claims experience improved.
The sector’s loss ratio declined to 36.90 per cent, representing a 2.17 per cent year-on-year improvement and remaining comfortably within the generally accepted normal range of 30 to 40 per cent, indicating that insurers maintained healthy underwriting discipline despite increased business volumes. Oracle Health recorded the highest loss ratio in the market at 58.61 per cent. Although this remained the highest among insurers, it nevertheless represented a 14.28 per cent improvement compared to the previous year.
ESRIC’s loss ratio increased by 7.07 per cent to 38.53 per cent, while Lidwala improved its underwriting performance after reducing its loss ratio by 5.95 per cent to 34.98 per cent.
Oracle Insure emerged as the industry’s most efficient underwriter, posting the lowest loss ratio of 20.29 per cent.
United General and Phoenix followed with loss ratios of 30.74 per cent and 31.33 per cent, respectively.
Oracle Insure also recorded the biggest annual improvement in underwriting efficiency after reducing its loss ratio by 40.48 per cent.
Industry claims also fell despite the strong growth in premiums.
Net incurred claims declined by 13.92 per cent to E70.09 million.
Motor insurance remained the largest contributor to claims, with payouts increasing 38.80 per cent to E24.82 million, accounting for 35.42 per cent of all claims paid during the quarter. Health claims recorded the fastest growth, surging 235.60 per cent year-on-year to account for 33.13 per cent of total claims, making it the second-largest source of insurance payouts. Workmen’s compensation claims ranked third after increasing 39.71 per cent, contributing 14.66 per cent of total claims.
Meanwhile, property, accident and liability claims all declined sharply by 74.58 per cent, 87.45 per cent and 82.23 per cent, respectively, together accounting for less than 10 per cent of industry claims.
