2019 Financial Stability Report

3.0 Financial Performance and Soundness of Non-Deposit-Taking

Institutions: Insurance Companies

in 2017 which spilled over into 2018 due to

3.1 Overview

damages caused by hurricanes. As a result,

Activity in the insurance sector of the ECCU

general insurers have reported relatively

remained buoyant in 2019, gross premiums

healthy profitability in 2019. The combined

are estimated to have risen by roughly

ratio is used as the metric for assessing the

4.1 per cent. Net premiums remained

profitability of the insurance sector, for

relatively stable at around 60.0 per cent of

2019 the combined ratio fell to 97.6 per cent

the total premiums written suggesting

from 112.3 per cent in 2018, ( Figure 18 ) .

ECCU insurers continue to enjoy access to

The main reason for the improvement in the

reinsurance markets. At the end of 2019,

ratio is due to lower claims payments which

gross premiums are estimated to have

helped to improve the loss ratio.

increased to EC$1.32b or roughly

US$489.0m, from EC$ 1.27b in the

Figure 18: Combined Ratio ECCU Insurance Sector

previous year (Figure 17).

115.0%

Figure 17: Gross and Net Premiums ECCU Insurers

110.0%

105.0%

$1,000.0 $1,200.0 $1,400.0

100.0%

$- $200.0 $400.0 $600.0 $800.0

95.0%

EC$ Millions

90.0%

2015 2016 2017 2018 2019 Est

2015 2016 2017 2018 2019 Est

Source 1: Single Regulatory Units

Gross Premiums

Net Premiums

ECCU insurers continue to maintain

Claims costs for general insurers have been

solvency margins in excess of what is

relatively stable following large claims cost

17