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
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