The insurance industry was able to achieve a growth of 14.36% in terms of overall Gross Written Premium (GWP), during the first quarter of 2021, recording an increase of Rs. 7,211 million when compared to the same period in the year 2020.
The GWP for Long Term Insurance and General Insurance Businesses for the period ending March 31, 2021 was Rs. 57,424 million compared with the same period in 2020 amounting to Rs. 50,213 million.
The GWP of Long Term Insurance Business amounted to Rs. 29,165 million (Q1, 2020: Rs. 21,735 million) while the GWP of General Insurance Business amounted to Rs. 28,259 million (Q1, 2020: Rs. 28,478 million).
Thus, Long Term Insurance Business witnessed a growth of 34.18% and General Insurance Business showed a decline of 0.77%, when compared to the corresponding period of year 2020.
The value of total assets of insurance companies has increased to Rs. 798,092 million as at March 31, 2021, when compared to Rs. 713,734 million recorded as at March 31, 2020, reflecting a growth of 11.82% mainly due to increase in corporate debts, government securities and equity. The assets of Long Term Insurance Business amounted to Rs. 585,509 million (Q1, 2020: Rs. 508,976 million) indicating a growth rate of 15.04% year-on-year. The assets of the General Insurance Business amounted to Rs. 212,583 million (Q1, 2020: Rs. 204,759 million) depicting a growth rate of 3.82 %. At the end of first quarter of 2021, investment in Government Debt Securities amounted to Rs. 232,081 million representing 44.77% (Q1, 2020: Rs. 204,620 million; 45.78%) of the total assets of Long Term Insurance Business, while such investment of the total assets of General Insurance Business amounted to Rs. 49,717 million representing 36.95% (Q1, 2020: Rs. 53,801 million; 42.33%).
Accordingly, the total investment of both Long Term Insurance Business and General Insurance Business in Government Debt Securities amounted to Rs. 281,798 million (Q1, 2020: Rs. 258,421 million).
Claims incurred by insurance companies in both Long Term Insurance Business and General Insurance Business was Rs. 20,352 million (Q1, 2020 Rs. 20,562 million) showing a slight decrease in total claims amount by 1.02%. The Long Term Insurance claims, including maturity and death benefits, amounted to Rs. 9,828 million (Q1 2020: Rs. 8,723 million). The claims incurred in General Insurance Business, including Motor, Fire, Marine and other categories, amounted to Rs. 10,524 million (Q1, 2020: Rs. 11,839 million) which is a decrease of 11.11%.
The profit (before tax) of Long Term Insurance Business amounted to Rs. 4,038 million (Q1, 2020: Rs. 3,580 million) while the profit (before tax) of General Insurance Business amounted to Rs. 3,210 million (Q1, 2020: Rs. 3,952 million) at the end of first quarter of 2021. Thus, profit (before tax) of Long Term Insurance Business has increased by 12.79%.
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