INSURANCE companies have performed generally well in terms of asset growth, profitability, adequacy of capital and solvency.
This was revealed by the Reserve Bank of Fiji's (RBF) deputy governor Inia Naiyaga this month. "We all understand the critical role played by the insurance sector in ensuring our risks are covered. To any economy, insurance provides the safety net against possible risks that could cost the country millions of dollars," said Mr Naiyaga.
Therefore, he said, insurance assists in the building block of a country by providing financial security in the event of a financial loss. On a more personal note, he added it provides comfort and relief to businesses, individuals and families from hardship.
From RBF's latest quarterly assessments, the total assets of the life insurance industry recorded a growth of around 8 per cent over the year, to reach $780million.
"Net profit grew over the second quarter of this year to reach $25m and net premium income grew by 25 per cent over the year to June 2012."
Meanwhile, he said there had been a remarkable increase in the aggregate solvency surplus of assets over the required solvency margin for the insurance industry with the two life insurance companies making up 50 per cent of the overall solvency surplus.