Insurance Industry GWP grows by 7.39% to Rs. 78,589 mn

On Jul 31, 2024

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The total Gross Written Premium (GWP) of the insurance industry for Long-Term and General Insurance Businesses for the period ended March 31, 2024 was Rs. 78,589 million (Q1, 2023: Rs.73,178 million), recording a growth of 7.39%. The premium growth is Rs. 5,411 million when compared to the same period in 2023.

The GWP of Long-Term Insurance Business amounted to Rs. 40,230 million (Q1, 2023: Rs. 33,733 million) recording a remarkable growth of 19.26%. The GWP of General Insurance Business amounted to Rs. 38,358 million (Q1, 2023: Rs. 39,445 million) recording a decline of 2.75%. The value of the total assets of insurance companies increased to Rs. 1,098,988 million at the end of 1st Quarter 2024, when compared to Rs. 991,126 million recorded as at the end of Q1 2023, reflecting a growth of 10.88%.

The assets of the Long-Term Insurance Business amounted to Rs. 824,890 million (Q1, 2023: Rs. 695,854 million) depicting a growth rate of 18.54%. The assets of the General Insurance Business amounted to Rs. 274,098 million (Q1, 2023: Rs. 295,272 million) showing a drop of 7.17%. Investments in Government Debt Securities as at the end of 1st Quarter 2024, amounted to Rs. 450,070 million (Q1, 2023: Rs. 335,377 million) representing 60.39% of the total investments of Long-Term Insurance Business and increased by 34.20%, while the total investment of General Insurance Business in Government Debt Securities amounted to Rs. 102,088 million (Q1, 2023: Rs. 89,144 million) representing 59.93% of the total investment of General Insurance and increased by 14.52%.

Accordingly, the total investment in Government Securities in the two businesses at the end of 1st Quarter 2024 amounted to Rs. 552,158 million (Q1, 2023: Rs. 424,521 million), showing an overall increase of 30.07%. The claims incurred by both the Long-Term Insurance Business and General Insurance Business were Rs. 32,384 million (Q1, 2023: Rs. 34,812 million) showing a drop of 6.97% year-on-year. The Long-Term Insurance claims, including maturity and death benefits, amounted to Rs. 18,320 million (Q1, 2023: Rs. 19,213 million).

The claims incurred in the General Insurance Business, including Motor, Fire, Marine and other categories, amounted to Rs. 14,064 million (Q1, 2023: Rs. 15,598 million).

The Profit Before Tax (PBT) for the period ended in both Long-Term Insurance Business and General Insurance Business amounted to Rs. 12,332 million (Q1,2023: Rs. 9,131 million) showing a considerable growth in total profit amount by 35.06%. The PBT of Long-Term Insurance Business amounted to Rs. 6,655 million (Q1, 2023: Rs. 6,377 million) showing a rise of 4.37%, while the PBT of General Insurance Business amounted to Rs. 5,677 million (Q1, 2023: Rs. 2,754 million) indicating a significant growth of 106.11%.

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