Insurance companies more than doubled their net profits to Sh5.76 billion in the six months to June, despite an increase in claims triggered by rebounding economic activities.
The latest industry data by the Insurance Regulatory Authority (IRA)shows profits grew 136 percent in the half-year from Sh2.24billion registered in a similar period of 2020, lifted by increased gross premiums and higher investment income.
The firms reported a 19 percent jump in gross premiums for the period ended June to Sh144.02 billion compared to Sh121.04 billion in the same period last year.
This followed the relaxation of restrictions late last year that saw the resumption of business activities and reopening of schools, leading to payment of the premiums and easing financial pain of most insurers.
The hit on the industry last year was apparent when firms said they were witnessing non-payment of premiums, lapsing policies, low renewals of short-term covers and suppressed uptake of new policies.
The performance has also been attributed to rising prices of listed equities on the Nairobi Securities Exchange, interest incomes from government securities and valuation of property investments.
Investment income under the long-term business jumped to near 2019 levels to Sh26.3 billion from Sh12.4 billion over the period. In 2019 the income was at Sh23.02 billion.
General insurers such as AAA Kenya, APA, Britam, CIC General, and ICEA Lion reported a profit after tax to Sh157.9 million, Sh3.39 billion Sh411.2 million, Sh2.6 billion, and Sh4.29 billion, respectively over the period.
In life insurance business, Britam Life, Jubilee Insurance and ICEA Lion life assurance also registered a profit after tax to Sh1.0 billion, Sh596.7 million, and Sh304.4 million respectively.
The industry has, however reported an increase in an underwriting loss of Sh1.46 billion especially due to general business, reversing a profit of Sh62.4 million over the two periods.