Which segments are supporting growth in new business premiums?

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Accepted Answer

New business premiums are primarily supported by the investment-linked and non-participating segments.

In the second half of 2023, new business premiums demonstrated a year-on-year improvement of 6.8 per cent. This growth was predominantly driven by the investment-linked and non-participating product categories. This sustained expansion in new business premiums provided crucial support to the overall earnings of the insurance and takaful sector.
Investment-Linked and Non-Participating Segments Drive Growth

The investment-linked and non-participating segments were key contributors to the 6.8 per cent year-on-year increase in new business premiums observed in the latter half of 2023. These segments have shown resilience and have been instrumental in bolstering overall sector performance. Their positive contribution helped to offset other pressures within the industry.
Overall Earnings Supported by Premium Growth

Despite challenges faced by other areas, the continued growth in total new business premiums played a significant role in supporting the sector's overall earnings. This growth metric is crucial as it indicates the industry's ability to attract new business and generate income streams. The positive trend in new business premiums provided a buffer against declining profitability in other segments.
Decline in Participating Business Share

In contrast to the growth areas, the share of net premiums from participating businesses has seen a decline. This segment's contribution to total net premium income has fallen to 16 per cent in the second half of 2023, down from 17 per cent in the same period of 2022. This shift indicates a changing composition within the new business portfolio.

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Which segments are supporting growth in new business premiums?

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