MBABANE – Eswatini’s insurance industry recorded strong growth in premium income during the second quarter of 2026.
According to the Financial Services Regulatory Authority’s (FSRA) Quarterly Statistical Bulletin for the second quarter of 2026, gross written premiums in the long-term insurance sector increased by 18.52 per cent year-on-year to E641.19 million, from E541.01 million in the corresponding quarter of 2025.
The short-term insurance sector also recorded growth, with gross written premiums rising by 15.60 per cent to E738.62 million from E638.94 million over the same period.
The bulletin, which covers the performance of non-bank financial institutions, reported that the insurance sector held assets worth E8.01 billion during the review period.
The long-term insurance sector’s premium growth was supported by increases in several product categories, particularly annuities, funeral cover, credit life and unit-linked savings.
Annuity premiums recorded one of the strongest increases, surging by 187.7 per cent year-on-year to E63.51 million. The category accounted for 9.90 per cent of total gross written premiums during the period.
Funeral insurance remained a significant contributor, with premiums increasing by 15.17 per cent from E120.05 million in the second quarter of 2025 to E138.25 million in the period under review.
Funeral insurance accounted for 21.56 per cent of total gross written premiums, making it the largest individual product category by premium contribution.
Unit-linked savings premiums also recorded substantial growth, rising by 353.91 per cent to E98.43 million. The category represented 15.35 per cent of total premiums, moving into second place among the sector’s product categories. Credit life premiums increased by 14.03 per cent year-on-year to E87.93 million, while endowment premiums rose to E29.53 million from E24.52 million.
However, not all products recorded growth. Retirement fund premiums declined by 34 per cent to E86.39 million, representing 13.47 per cent of total gross written premiums.
Group life premiums fell by 12.72 per cent to E59.83 million, while individual life premiums declined by 6.96 per cent to E70.83 million.
While premium income expanded, claims and policy benefits in the long-term insurance sector also increased.
The FSRA reported that claims and policy benefits rose by 23.58 per cent year-on-year, from E297.30 million in the second quarter of 2025 to E367.45 million in the second quarter of 2026.
The increase was largely driven by retirement fund claims, which climbed by 93.60 per cent from E69.81 million to E135.15 million.
Funeral claims increased by 13.90 per cent to E44.82 million, while claims relating to unit-linked savings rose by 18.68 per cent.
Annuity claims amounted to E37.97 million, accounting for 10.33 per cent of total claims during the review period.
In contrast, claims in group life, credit life and endowment products declined by 43.03 per cent, 5.28 per cent and 4.59 per cent, respectively. The three categories recorded combined claims of E45.27 million.
The FSRA’s reported long-term insurance loss ratio increased by 19.57 per cent quarter-on-quarter to 61.29 per cent and rose by 1.84 per cent year-on-year. At company level, Old Mutual recorded the highest loss ratio at 177.89 per cent, following a substantial year-on-year increase. ESRIC’s loss ratio declined by 21.26 per cent to 60.47 per cent, while Liberty recorded the lowest ratio at 24.72 per cent.
