This archive report was first published on 19 November 2019.
Published on November 19, 2019, Cytonn Investments released their H1'2019 Insurance Sector Review, highlighting the performance of listed insurers in Kenya following the release of the H1'2019 financial results.
The report, themed 'Regulation and Consolidation to Drive Attractiveness,' focused on the performance of listed insurers, as well as the main trends in the sector, and areas that will be crucial for growth and stability going forward.
According to the report, the comprehensive score rankings were based on franchise rankings, which compare metrics for efficiency and growth, and also from a future growth perspective.
Rankings were as follows: Jubilee Holdings took the top position, followed by Sanlam Kenya, Liberty, Britam Holdings, and CIC.
The report noted that the average earnings of listed insurance companies increased by 3.8% points in H1'2019 to 3.2%, from (0.6%) in H1'2018.
However, the insurance core business remains unprofitable, indicated by high loss and expense ratios.
On the key trends that shaped performance, the report highlighted the increasing adoption of digital transformation to drive growth and increase insurance penetration.
Insurance companies used innovation to automate manual processes, with mobile phones offering a new way of distributing insurance products to consumers who are not online.
On the regulatory front, the report noted that the adoption of IFRS 9 and IFRS 17 will enable insurance companies to develop appropriate models for their customer debtors and lower their credit risk in the future.
Going forward, the report emphasized the importance of technology and innovation capabilities in driving growth for the sector.
