Insurance sector records brisk forex business

Source: Insurance sector records brisk forex business –Newsday Zimbabwe

rokers reported GPW amounting to US$17,9 million for the period under review.

For the quarter under review, the Life Assurance sector wrote foreign currency business amounting to US$10,5 million, an increase of 184% compared to the same period last year.

The Life Reassurance sector reported foreign currency business amounting to US$0,78 million for the period.

“Growth in forex business is an indication of the increase in forex-denominated risks being written by direct insurers,” the report read in part.

The main income drivers for forex business were GPW and investment income. The total claims paid in forex amounted to US$149 million, which translated to the claims ratio of 20%.

The underwriting profit for forex business amounted to US$477 million, which resulted in profit after tax of US$419 million.

Funeral assurance sector recorded a gross premium amounting to US$497 298 and R179 104. The report shows that foreign currency-denominated assets amounted to US$257 million in the pension sector, constituting 12% of the industry’s total assets.

“The holding of foreign currency-denominated assets helps in cushioning the assets from being eroded by inflation in the current hyperinflationary environment,” Ipec said.