Funeral assurers’ new business hits 7%
By Alois Vinga
FUNERAL Assurance companies recorded new business to the tune of 7% on the back of sound performance in recurring contracts, the Insurance and Pensions Commission (IPEC) first quarter 2024 report has revealed.
The report observes the life assurance sector was made up of 12 direct life assurance companies, four life reassurance companies, and 1,431 life assurance agents. It is based on all 12 direct life assurers, and three reassures.
For the first quarter that ended 31 March 2024, direct life assurers reported insurance revenue amounting to ZW$485.88 billion.
In US$ equivalence, derived from converting the ZW$ revenue by the average official exchange rate for the quarter, the total revenue for the sector amounted to US$30.93 million.
“Recurring and new business constituted 93% and 7%, respectively for the quarter under review. 1.5 Funeral assurance and group life assurance remain the primary revenue sources for the life sector, with a combined share of 84.48% of total revenue,” the report said.
The 12 life assurers and three (3) life reassurance companies that lodged returns, reported capital positions that were compliant with the Minimum Capital Requirements (MCR) of ZW$75 million and ZW$112.5 million, respectively as prescribed under S.I. 95 of 2017.
Funeral assurance and group life assurance remain the primary revenue sources for the life sector, with a combined share of 84.48% of total revenue.
During the period, direct life assurers reported a 127% nominal growth in total assets from ZW$3.55 trillion as at 31 December 2023 to ZW$8.03 trillion as at 31 March 2024, against an annual inflation rate of 55.3%.
The growth was mainly driven by an increase in fixed property values due to revaluation gains.
In US$ equivalence, the sector’s assets were approximately US$4.28 million, signifying a decrease of about 37% from US$6.8 million reported in December 2023. The decrease in assets for reassures in terms of US$ is on account of exchange rate distortions over the review period.