Term deposits and repurchase agreements drive growth for general insurers in 2024




The Financial Services Commission (FSC), sector regulator, reports that term deposits and repurchase agreements drove asset growth for general insurers companies in Jamaica in 2024 although profit for the segment remained flat.

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.

The general insurance sector’s assets totaled $96.9 billion and accounted for 17.8 per cent of assets in the insurance sector. That sector’s total assets increased by 8.8 per cent or $7.8 billion as at June 30, 2024, which was predominantly driven by investments.

The value of investments increased by 9.9 per cent or $5.0 billion relative to the corresponding period in 2023; invested assets were concentrated in instruments such as term deposits and repurchase agreements

Additionally, the total insurance liabilities for the general insurance industry increased by 9.2 per 
cent or $5.1 billion which was mainly driven by an increase in insurance contract liabilities.

For the period ended June 2024, the general insurance sector reported a 14.3 per cent or $0.2 
billion increase in profit before taxes.

The growth in profit before taxes was primarily attributed to a 19.9 per cent or $7.0 billion increase in revenue from PAA contracts as it relates to the property class of insurance business.

Revenue generated was partially offset by increases in both insurance service expenses and net expenses from reinsurance contracts held resulting in an insurance service result of $1.7 billion.

Notwithstanding, the FSC stated, the insurance services result grew by $112.5 per cent or 0.9 billion due to the growth in revenue outpacing the magnitude of the growth in insurance expenses relative to 2023.

Additionally, net investment result increased by 10.5 per cent or $0.1 billion. This occurred due to 
an increase in interest income earned by some companies from investments held in instruments 
such as certificate of deposits and repurchase agreements.

Overall, the general insurance sector remained adequately capitalized and solvent said the FSC.


As at June 30, 2024, the sector had a weighted average Minimum Capital Test (MCT) ratio of 230.7 per cent, which exceeded the 150.0 per cent
regulatory benchmark.

Also, the weighted average solvency ratio was above the 25.0 per cent minimum regulatory requirement.

Photo credit: Warriorsforjustice.com 

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