THE Pension Insurance Authority (PIA) has revealed that the industry’s net assets stood at K8,86 billion by end last year.
PIA Acting Registrar and Chief Executive Officer Tresford Chiyavula also disclosed that the financial performance of industries recorded a marginal growth in 2020 largely due to the negative impact of the COVID-19 pandemic on the economy.
Mr. Chiyavula said the pension industry net assets stood at K8.86 billion as at December 2020 compared to K7.96 billion in 2019, translating into an increase of 11.3 percent.
He added that the investment stood at K1.18 billion compared to K805.30 million in 2019, translating into an increase of 47.4 percent.
He attributed the increase mainly to the positive performances of government bonds, collective investment schemes and offshore investments.
Mr. Chiyavula explained that the total pension scheme membership reduced to 111,494 as at 31st December 2020 from 111,959 as at 31st December 2019, representing a reduction of 0.42 percent.
“The number of active members also stood at 92,454, representing 82 percent of the total membership, while deferred members
stood at 5,628, representing five percent of the total membership during the period under review,” he explained.
He said in terms of industry players, there were 244 pension schemes, six fund administrators, and eight fund managers as at the
end of the fourth quarter of 2020.
Mr. Chiyavula noted that in the insurance industry, the combined gross written premiums (GWP) for both the long-term and
general insurance business contracted by 13 percent to K1.15 billion as at 30th September 2020 from K1.36 billion in the
corresponding quarter of 2019.
The GWP for the general Insurance was K720 million while long-term insurance contributed K430 million during the same period.
He said the significant decrease was attributed to the long-term insurance business, and largely arose due to defaults in servicing insurance policies, which can mainly be attributed to the effects of Covid-19 on the economy.
“Net assets in the insurance industry increased by 56.88 percent from K762.38 million in the third quarter of 2019 to K1.19 billion at the end of the third quarter of 2020.
The increase was largely attributed to assets introduced by insurance entities to meet solvency requirements.
He said the pensions and insurance industries were not spared from the negative effects arising from the Covid-19 pandemic.
The pension contributions arrears increased and some insurance classes such as life and travel insurance did not perform to expectations.