$44.6M surplus despite challenging economic conditions

Despite the natural catastrophes and the challenging economic conditions, the insurance industry in Fiji recorded an after tax surplus of $44.6 million, representing a growth of 32.2 percent in 2009.

The 2009 Insurance Annual report was tabled in cabinet yesterday by Prime Minister and Minister for Finance Commodore Voreqe Bainimarama which includes a review of the performance of the international and local insurance industry last year.

In the report, RBF Governor Sada Reddy stated that 2009 was a year of recovery for the international insurance market but on the domestic front, the insurance market continued to be resilient.

Reddy said the insurance market continued to operate in a prudent manner, reporting an adequate solvency position in 2009 and playing a very important role in assisting the economic recovery of the nation after the devastating effects of two major events, the January floods and Cyclone Mick.

The Governor further highlighted that the industry continued to grow, with gross premiums increasing by 2.2 percent in 2009 to $206.1 million.

Reddy said much of the growth stemmed from the life insurance sector primarily due to the underwriting of investment-linked policies.

According to Reddy, the outlook for the domestic insurance industry remained positive, consistent with the anticipated economic recovery.

He stressed that the role of the insurance industry in the sustainable development of Fiji continues to be of paramount importance.


Story by: Roneel Lal