grow by 14 percent
$5 billion in total assets
The combined net profit of insurance companies increased by 14 percent to $174.1 million in 2018 compared with the previous year, according to the Insurance Control Commission (ICC)’s annual report for 2018.
The jump in profits was driven by a one percent increase in written premiums, which rose to $1.63 billion and a three percent drop in paid claims, which fell to $937 million.
“Profitability remains largely stable with an overall profit margin of 11 percent driven by good margins on life insurance estimated to reach 22 percent, while margins on non-life neared five percent,” said Nadine El-Habbal Acting Head of the ICC.
Net profit from life insurance activities rose seven percent to $118 million. Net profit from non-life insurance surged 32 percent to nearly $56 million.
Total assets grew two percent year-on-year to $4.9 billion at the end of 2018.
El-Habbal said that investments in money market securities account for 54 percent of the total assets of insurance companies. Investments in bonds and real estate represent 32 percent and five percent of overall assets respectively.
Reported by Shikrallah Nakhoul
Date Posted: Oct 16, 2019