‘LABUAN IBFC FULFILS NEEDS’ Gross written premiums have risen 2.2pc to US$1.4b
THE Labuan International Business and Financial Centre (Labuan IBFC) continues to serve the region’s rapidly expanding insurance needs, with gross written premiums increasing 2.2 per cent to US$1.4 billion (RM5.66 billion).
Of the US$1.4 billion, 63.2 per cent was retained in Labuan, mainly driven by general reinsurance and captive premiums amounting to US$943 mil- lion and US$361 million, respectively.
“Last year, 14 insurance and insurance-related firms were set up in Labuan IBFC,” it said in a statement yesterday.
Contributions from foreign businesses increased 60.9 per cent and remained a significant portion of the Labuan insurance sector’s business pie.
Fire risk insurance maintained its market dominance at 36.7 per cent of total premiums.
“The underwriting margin contracted to US$491.9 million because of the increase in catastrophe-related claims during the year. This resulted in the overall claims increasing from 35.2 per cent to 63.5 per cent.
“As a result, the overall industry’s profitability moderated to US$170 million last year from US$387.3 million a year earlier,” it said.
Despite this, Labuan’s insurance sector’s financial footing remained sound and stable, with a strong solvency margin of five times above the regulatory requirements, it added.