GA Insurance profit increases to Sh1bn

GA Insurance has announced a 10.8 percent growth in net profit to Sh1.05 billion for the general business, driven by increased income and muted rise in operating costs.

The profit, for the year ended December 2019, is a rise from Sh992.8 million posted a year earlier.

According to the insurance company, gross written premium grew by 10.6 percent to Sh6.92 billion while investment income rose by 34 percent to Sh2.04 billion, boosting the top line. Total income rose by 14 percent to Sh6.27 billion.

The growth in net profit was despite total expenses rising by Sh539 million or 12 percent to hit Sh4.86 billion during the period.

Claims and policy holder benefits rose from Sh4 billion to Sh4.99 billion, making it the key driver for the rise in expenses incurred by the insurer with operations in Kenya, Uganda and Tanzania.

Gross claims ratio, a measure of total incurred losses in relation to total insurance premiums collected moved from 55 percent to 59 percent.

Net gains on financial assets held at fair value jumped from Sh32 million to Sh102.1 million, sending comprehensive income to Sh118.9 million.

During the same period, GA Life posted a more than doubling of net profit to Sh112.4 million from Sh50 million posted in preceding similar period.

This was driven by a rise in total income by 49 percent to Sh1.2 billion from Sh803 million posted a year earlier.