Life assurance profit tumbles 19% in Q1

PROFIT-after-tax for life assurers decreased by 19,31% to $5,14 billion during the first quarter of 2021 from $6,37 billion reported during same quarter last year, the Insurance and Pensions Commission (Ipec) has revealed.

The Ipec first quarter report shows that the main driver of the decrease in profit was a decrease in fair value adjustments of investments and other income for the quarter ended March 31, 2021 as compared to the quarter ended March 31, 2020.

The report shows the combined ratio for the life assurance sector decreased from 75% for the quarter ended March 31, 2020 to 71,82% for the comparable period in 2021, an indication of a positive improvement on profitability.

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