Occupational pension fund membership increases
THE Insurance and Pension Commission (IPEC) says there has been a marginal increase in both registered occupational pension funds and the industry’s total membership including beneficiaries in the period to 30 June as compared to the same period last year.
As of 30 June, there were 978 registered occupational pension funds compared to 972 as at 30 June 2021.
In a statement accompanying its second quarter pensions report, the commission said the increase was mainly due to newly registered funds in the period under review.
The commission said 615 were active, constituting 63 percent of the industry funds. The remaining 37 percent were either paid up or undergoing dissolution as per the Dissolution Directive issued by the Commission to dissolve inactive funds.
“There were 978 registered occupational pension funds as at 30 June 2022 compared to 972 funds as at 30 June 2021.
“The increase was mainly due to newly registered funds over the period under review,” said IPEC.
“The industry’s total membership including beneficiaries, increased by 7 percent from 915 975 as at 30 June 2021 to 976 060 as at 30 June 2022. This was mainly as a result of the new funds.”
IPEC also said the total income for the half year ending 30 June 2022 was Z$310 billion compared to Z$55 billion for the half year ending 30 June 2021.
“This translates to a nominal increase of 468 percent and a real increase of 95 percent. Total income was mainly driven by fair value gains on investments, interest from investments and contributions, which constituted 59 percent, 20 percent and 7 percent of total income, respectively,” said IPEC.
Meanwhile, the commission has reported that for the half year-ended 30 June 2022, the Life Assurance Sector reported Gross Premium Written (GPW) of Z$17, 7 billion, representing a nominal increase of 141 percent from Z$7, 4 billion reported in the comparative period in 2021.
“The growth in GPW was 26 percent in real terms and was mainly attributable to premium increases in response to the rise in inflation. The two classes which contributed to the significant increase are funeral and group life business,” they said.
“GPW for life reassurances grew by 151 percent in nominal terms from Z$237,6 million reported for the half year-ended 30 June 2021 to Z$595,3 million for the half year-ended 30 June 2022.
“In real terms, the GPW by Life Reassurers grew by 31 percent from Z$237,6 million reported for the half year-ended 30 June 2021 to Z$310,7 million for the half year-ended 30 June 2022.”
For the half year-ended 30 June 2022, IPEC said the Life Assurance Sector reported foreign currency business amounting to US$9 million.
“The foreign currency business was mainly written from the funeral assurance business, with one player writing 48 percent of the business. The Life Reassurance companies reported foreign currency business amounting to US$1,2 million for the half year-ended 30 June 2022,” IPEC reported.-chronicle.co.zw
