Insurance firms experience 46% decline in profits, as industry continues to bleed6 years ago
According to the Insurance and Pensions Commission (Ipec), Zimbabwean Insurance companies are making losses despite generating millions of dollars due to the harsh economic conditions currently prevailing.
Life insurance firms saw a decline in profits of 46% from $69 513 in the nine months to September in 2015 to $37 750 in the same period this year. The net premium for the period under review was $257 million while total costs were $219 Million.
In a statement Ipec said:
Total costs were $219 million resulting in a combined ratio of 85 percent, a 14 percent growth from the same period last year.
An Insurance expert also said:
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The decimation of the industry, which intensified following the switch to dollarisation in 2009, has deepened, with quarterly cancellations in the life business averaging 37 percent in the past two years.
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