ESRIC investment income up 9.3%
MBABANE ± 7he Eswatini Royal Insurance Cor poration ESRIC in vestment income hiked from E31 million to E33.7 million. 7his was outlined in their integrated annual report, where the insurance company availed that the dividend was E128.7 million, an e[pansion from the previous financial year where they record E105.3 million as dividends.
7he life insurance business achieved premium growth of five per cent dur ing the period under review. Operat ing profit, however, decreased from E72 million recorded in the same period last year to E4 million. 7he significant decline was largely due to a marked increase in the volume of CO9I' 1 related claims.
'uring the year, to 'ecember 31, 2021, the corporation¶s operating profit remained flat at E145 million compared to E145.5 million in the prior year, broadly in line with the growth achieved in the gross written premium GWP .
$t 'ecember 31, 2021, the non life international solvency ratio net eq uity as ratio to net written premiums stood at 11 per cent 2020 ratio of 117 per cent compared to the indus try international solvency ratio bench mark of 50 per cent.
7he life insurance business is also well capitalised with e[cess assets over liabilities of E258.1 million 2020 E313. million . On 'ecem ber 31, 2021, ESRIC¶s capital ade quacy requirement C$R was E 8.1 million 2020 E86. million .
ASSETS
7he actuarial valuation of the /ife long term insurance business at 'ecember 31, 2021 shows that the value of assets e[ceeds the value of liabilities by E258.1 million 2020 E313. million .
7he total embedded value of ES RIC¶s life business as at 'ecember 31, 2021 stood at E260 million, com pared to E318 million in the previous year, after allowing for two times
C$R in the 2021 opportunity cost of capital to be in line with the Corpora tion¶s dividend policy.
7his calculation was conducted broadly in accordance with the gen eral guidance contained in PG1107 issued by the $ctuarial Society of South $frica, a standard which does not yet apply in Eswatini.
ESRIC Chairperson 0uhawu 0a]iya in the report said ³7he economy is beginning to show signs of recovery from the pandemic im posed economic slowdown. With vaccines now by and many more available, and improved treatment of CO9I' 1 , governments across the world have been opening social and business activity more and more, in spiring hope of growth once business operations resume. )inally there are indications of light at the end of the tunnel.”
0a]iya said they continued in the course of the year under review with their mandate of providing 1on /ife insurance, /ife $ssurance and Pension $dministration services in a very challenging business environ ment.
He said ESRIC had been affected in the past two years by the disruptions brought about by the CO9I' 1 pan demic, which ravaged the business environment in the country, placing many of their clientele in a bearish en vironment that inevitably negatively affected their plans for growth.
CLIENTS
³$s if that was not enough, business was further crippled by the civil un rest in the second half of the year. 7his also disrupted normal business and placed further downward pressure on our clients and negating our efforts for growth.
³$s a consequence of this unfavour able environment, the year under re view has generally been marked by stagnant performance of premiums resulting in the non life section of the business recording only one per cent growth. 7he life section of the busi ness, however, grew by 4.6 per cent compared to 2020”, he added.
0a]iya further mentioned that the