Insurance industry musters 3.7% growth in 3Q | Daily News

Insurance industry musters 3.7% growth in 3Q

The insurance industry was able to achieve a growth of 3.7% in terms of overall Gross Written Premium (GWP), during the third Quarter of 2020, recording an increase of Rs. 5,231 million when compared to the same period in the year 2019.

The GWP for Long Term Insurance and General Insurance Businesses for the period ending September 30, 2020, was Rs. 145,391 million. The GWP of Long -Term Insurance Business amounted to Rs. 72,297million (Q3, 2019: Rs. 63,913 million) recording a growth of 13.12%. The GWP of General Insurance Business amounted to Rs. 73,094 million (Q3, 2019: Rs. 76,247 million) recording a decline in growth of 4.14%.

The value of the total assets of insurance companies has increased to Rs. 747,489 million as at September 2020, when compared to Rs. 675,093 million recorded as at end of September 30, 2019, reflecting a growth of 10.72%. The assets of Long-Term Insurance Business amounted to Rs. 556,157 million indicating a growth rate of 15.79%. The assets of General Insurance Business amounted to Rs. 191,332 million depicting a decline growth rate of 1.76% at the end of 3rd quarter 2020.

At the end of the third quarter 2020, investment in Government Debt Securities amounted to Rs. 224,173 million representing 45.6% (Q3,2019; Rs. 205,202 million; 48%) of the total investments of Long-Term Insurance Business, while such investments of the total investment of General Insurance Business amounted to Rs. 44,264 million representing 35.9% (Q3, 2019:Rs. 43,207 million; 36.5%).

Accordingly, the total investment of both Long-Term Insurance Business and General Insurance Business in Government Debt Securities amounted to Rs. 268,437 million.

Thus, the investment in Government Debt Securities of Long-Term Insurance Business and General Insurance Business has increased by 9.25% and 2.45% respectively.

The claims incurred by insurance companies during the 3rd Quarter of 2020 in both Long Term Insurance Business and General Insurance Business was Rs. 55,965 million (Q3, 2019:Rs. 63,361 million) showing a decrease in total claims amount by 11.67% year-on-year.

The Long-Term Insurance claims, including maturity and death benefits, amounted to Rs. 27,521 million (Q3, 2019: Rs. 26,570 million).

The claims incurred in General Insurance Business, including Motor, Fire, Marine and other categories, amounted to Rs. 28,444 million (Q3, 2019: Rs. 36,791 million).

The profit (before tax) of insurance companies as at end of 3rd quarter 2020 in both Long Term Insurance Business and General Insurance Business amounted to Rs. 20,159 million (Q3, 2019:Rs. 18,119 million) showing an increase in total profit amount by 11.26%.

The profit (before tax) of Long-Term Insurance Business amounted to Rs. 9,978 million (Q3, 2019: Rs. 12,220 million) while the profit (before tax) of General Insurance Business amounted to Rs. 10,181 million (Q3, 2019: Rs. 5,899 million).

As of September 30, 2020, 27 insurers were registered with the Insurance Regulatory Commission of Sri Lanka.