- Total assets stood at ZWL$49.81 billion in nominal terms
- Fixed properties and equities dominated asset base
- Old Mutual market share was 41.92%
Harare- Total assets in the Life Assurance business for the half year ended 30 June 2020 grew by 134.62% in nominal terms, while Old Mutual Life dominated other players.
Data recently released by the Insurance and Pensions Commission (IPEC) shows that total assets grew from ZWL$21.23 billion reported as at 31 March 2020 to ZWL$49.81 billion reported as at 30 June 2020.
“Growth in the asset base of the life assurance sector was driven by an increase in the value of fixed properties and equities as these assets tend to track inflation”, IPEC stated.
In terms of composition of the asset base of life assurers, 83.31% was in fixed properties (37.27%) and equities (46.04%), asset classes which IPEC says have continued to offer inflation protection for policy holder funds.
Old Mutual Life which dominated the sector with a market share of 41.92% was the dominant player in terms of total assets, with a share of 81.90% of total assets while the remaining 11 payers shared the remaining 18.1%.
The life assurance sector’s total profit after tax for the period under review increased by 84.54% in inflation adjusted terms to ZWL$4.07 billion, indicating that the sector’s profits managed to outpace inflation.
IPEC attributed the growth in profits to significant increases in investment income from revaluation gains on quoted equity investments.
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