GA Insurance weather Covid-19 storm to post marginal decline in profit

NAIROBI, KENYA: GA Insurance has reported a Sh1.02 billion profit after tax in the year to December 2020, a marginal decline from Sh1.05 billion the insurer made in 2019 - weathering the shocks caused by Covid-19.

The insurer’s gross written premiums increased 19.6 per cent to Sh8.35 billion in 2020 compared to Sh6.98 billion in 2019.

The increase in the revenues was however affected by higher operational expenses, which went up to Sh6 billion from Sh4.9 billion. The expenses include claims paid to policyholders that went up to Sh5.72 billion from Sh4.99 billion as well as commissions paid to agents.

The company in September last year launched a Covid-19 product, which offers Sh100 000 to holders who contract Covid-19. This was at a time when most insurers avoided offering products covering the disease or altering existing products to cover Covid-19.