The insurance sector assets crossed the Sh1 trillion mark on improved income in the first quarter of 2023, the Insurance Regulatory Authority (IRA) data shows.

IRA performance statistics for the first quarter of the year attributes the growth to the continued economic recovery from the negative effect of Covid-19 between 2020 and 2021.

Industry assets increased by 14.1 per cent to Sh1 trillion against industry liabilities of Sh815.5 billion. This resulted in a net asset of Sh184.97 billion.

According to Statica, total assets of the life insurance industry in Kenya reached Sh514 billion Kenyan shillings in 2020. The amount increased from Sh466 billion the previous year, keeping an upward trend observed since 2015.

The insurance industry‘s gross premium income also grew by 14.8 per cent in the first three months of 2023, rising to Sh104.5 billion compared to Sh88.4 billion reported in the same quarter last year.
The income has been rising for the past three years, rising from a five year low of Sh79.3 billion in the first quarter of 2021.

Long term insurance business premiums amounted to Sh38.97 billion accounting for 38.4 per cent of the total industry premium, while general business premiums amounted to Sh62.52 billion (61.6 per cent).
This is an improvement compared to Sh34.5 billion registered in a similar period last year, which represented 18.6 per cent of sector premiums.

The amount was lower, at Sh30.7 billion or 12.1 per cent of total industry earnings in a similar quarter in 2021.
Investment income under long-term insurance business increased to Sh14.38 billion during the quarter under review compared to Sh9 billion.

The general insurance business recorded an investment income of Sh2.98 billion during the period compared to Sh2.5 billion last year.

Under general insurance business, Workmen’s Compensation gross premium income had the highest growth of 64.1 per cent from Sh3.19 billion reported in the first quarter of 2022 to Sh5.23 billion reported in the first quarter of 2023.

Personal Accident had the largest decline from Sh1.07 billion recorded in the first quarter 2022 to Sh972.67 million in the first quarter of 2023.