May 19, 2022 12:06 am

Life insurance company continue to pile up savings as premium income grows.

THE Financial Services Commision (FSC) indicates in its latest insurance industry update (to December 2021) that the island’s six life insurance companies continued their dominance within the insurance sector, accounting for 79 per cent of the sector’s total assets, while the eleven general insurance companies accounted for 21 per cent.

According to FSC data, both total assets and investment assets for the life insurance companies rose by 8.2 per cent and 8 per cent to $397.6 billion and to $354 billion, respectively, as at December 31, 2021.

Combined total liabilities grew by 7.3 per cent to $264.5 billion from the $247.2 billion as at end of December 2020. Cumulated capital climbed by 10.8 per cent to $133.1 billion, from $120.2 billion at December 2020.

For the life sector, for the twelve-month period ended December 2021 net premiums earned (NPE) for the industry amounted to $76.5 billion, reflecting a 13.4 per cent expansion when compared to the NPE of $67.5 billion for the similar period in 2020.

The FSC noted that the growth in NPE was due to an uptick in business, especially the annuity class of business. Other income jumped by 47.8 per cent, over the comparative period in 2020, to reach $7.4 billion at December 2021. This was mainly due to an extraordinary item of recognition of income to the general fund, the FSC outlined.

by Taboola