Insurance Industry GWP increases to Rs. 279,167 Mn

On Apr 2, 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 December 31, 2023 was Rs. 279,167 million (Q4, 2022: Rs.257,580 million), recording a growth of 8.38%.

The premium increase is Rs. 21,587 million when compared to the same period in the year 2022. The GWP of Long-Term Insurance Business amounted to Rs.152,793 million (Q4, 2022: Rs. 135,367 million) recording a growth of 12.87%. The GWP of General Insurance Business amounted to Rs. 126,374 million (Q4, 2022: Rs. 122,213 million) recording a growth of 3.40%.

The Profit Before Tax (PBT) of insurance companies as at the end of 4th Quarter 2023 in both Long-Term Insurance Business and General Insurance Business amounted to Rs. 50,637 million (Q4, 2022: Rs. 50,336 million) showing a slight increase in total profit amount by 0.60%. The PBT of Long-Term Insurance Business amounted to Rs. 30,617 million (Q4, 2022: Rs. 23,439 million) showing a significant growth of 30.63%, while the PBT of General Insurance Business amounted to Rs. 20,020 million (Q4, 2022: Rs.26,897 million) indicating a decrease of 25.57%.

The value of the total assets of insurance companies increased to Rs.1,086,913 million at the end of 4 th Quarter 2023, when compared to Rs.947,259 million recorded at the end of Q4 2022, reflecting a growth of 14.74%. The assets of the General Insurance Business amounted to Rs.266,990 million (Q4, 2022: Rs. 278,583 million) showing a marginal decline of 4.16%.

Investments in Government Debt Securities for the period ended Q4, 2023 amounted to Rs. 425,770 million (Q4, 2022: Rs. 324,362 million) representing 57.11% of the total investments of Long-Term Insurance Business and increased by 31.26%, while such investment of the totalinvestment of General Insurance Business amounted to Rs. 77,387 million (Q4, 2022: Rs. 88,899 million) representing 45.66% of the total investment of General Insurance and decreased by 12.95%. Accordingly, the total investment in Government Securities in the two businesses for the period ended Q4, 2023 amounted to Rs. 503,157 million (Q4, 2022: Rs. 413,262 million), showing an overall increase of 21.75%.

Claims incurred by insurance companies in both the Long-Term Insurance Business and General Insurance Business were Rs. 136,654 million (Q4, 2022: Rs. 122,262 million) showing an increase of 11.77% year-on- year.

The claims incurred in the General Insurance Business, including Motor, Fire, Marine and other categories, amounted to Rs. 60,152 million (Q4, 2022: Rs.61,624 million). Hence, during the fourth quarter of 2023, claims incurred in Long Term Insurance increased by 26.16% and claims incurred in General Insurance decreased by 2.39%.

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