Life insurers profit from new contracts, government securities in 2024




The island's six life insurance companies reported total assets of $448.0 billion at mid-year 2024. They continued to dominate the insurance sector, representing 82.2 per cent of the sector’s total assets.


As at June 30, 2024, there were seventeen registered insurance companies; that is, six life 
insurance and eleven general insurance companies.


The total assets recorded for the insurance sector was $544.9 billion at June 2024, which represented a growth of 9.1 per cent or $45.6 billion year over year.


The Financial Services Commision (FSC), sector regulator, says asset growth in the life insurance sector was driven by investments, which increased by 4.0 per cent or $13.5 billion relative to June 2023, and was primarily driven by holdings in public sector domestic securities.

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Additionally, asset growth was bolstered by a 57.4 per cent or $12.3 billion increase in cash and
cash equivalents.  Notably, the total insurance liabilities for the life insurance sector increased by 4.3 per cent or $13.5 billion when compared to June 30, 2023.

This, the FSC stated, was mainly due to a rise in the valuation of existing insurance contract liabilities, the FSC noted.

For the six-month period ended June 2024, the life insurance sector reported a 2.3 per cent or 
$0.2 billion increase in profit before taxes.

This performance result stemmed from a 15.0 per cent or $4.8 billion increase in total insurance revenue, mainly from contracts.

However, the revenue generated was offset by a 13.4 per cent or $3.6 billion increase in insurance service expenses leading to an insurance service result of $5.6 billion. This was 12.0 per cent or $0.6 billion increase in the sector’s insurance service result relative to June 2023.

Further, net investment result declined by 0.2 per cent or $0.01 billion as some companies continued to experience fair value losses on investments.

Notwithstanding, the FSC outlined, the life insurance sector remained solvent and adequately capitalized.

All companies within the sector reported solvency ratios above the 10.0 per cent minimum 
regulatory benchmark. 

The sector also had a weighted average Life Insurance Capital Adequacy Test (LICAT) ratio of 224.1 per cent, which exceeded the 100.0 per cent regulatory benchmark.


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