Insurance companies’ profits more than double as sector assets increase

An analysis of published financial statements shows that total assets for the sampled firms exceeded Sh1.35 trillion for the year ended December 31, 2025. This represents a marked rise from Sh1.04 trillion recorded in the preceding year.

Most companies returned to profitability across both life and general insurance segments. The development underscores the industry’s recovery from earlier pressures and its growing contribution to the wider financial system.

The growth has been attributed to sustained economic activity, stronger enforcement of mandatory insurance covers, and the rapid expansion of bancassurance services. Bancassurance allows insurers to leverage banks’ customer networks, thereby widening their reach and reducing distribution costs.

Analysts also point to rising public awareness, particularly in motor, property and life insurance, as an important factor shaping the market’s trajectory.

An industry analyst noted that insurance is becoming more relevant to the broader economy.

This relevance is being supported by regulatory enforcement and continued innovation in distribution channels. The analyst observed that improved customer education has strengthened confidence in insurance products and encouraged greater participation among households and businesses.

Despite the overall growth, the market remains highly concentrated. A small number of large players account for a significant share of total profits. In the life insurance segment, Sanlam Allianz Life Insurance Tanzania led the sector after posting Sh40.6 billion in profit.

This figure represents nearly half of the combined earnings reported by the surveyed firms. In the general insurance segment, Alliance Insurance Corporation stood out with Sh14.1 billion in profit.

Several companies recorded notable gains during the year. CRDB Insurance Company Limited more than doubled its gross written premiums to Sh55.7 billion. Its profit rose by 107 percent to Sh4.39 billion.

The increase was largely driven by its bancassurance model, supported by the extensive retail network of its parent bank. Bumaco Insurance also recorded strong growth, with profit rising to Sh4 billion from Sh700 million in the previous year.

Turnaround performances were observed among firms that had recorded losses in 2024. Meticulous General Insurance and Newtan Insurance Limited both returned to profitability during the reporting period.

Other insurers reported steady growth and improving operational stability. These included Mayfair Insurance Company Tanzania Limited, Reliance Insurance (Tanzania), MUA Insurance Tanzania, Britam Insurance Tanzania, Heritage Insurance Tanzania and ICEA Lion General Insurance.

The chairperson of the Association of Tanzania Insurers, Dr Flora Minja, said the results reflect a maturing and increasingly resilient sector. She noted that performance has been supported by sustained economic activity and growth in mandatory lines such as motor insurance.

Expanding uptake in life and health insurance segments has also contributed to stronger financial outcomes. She added that regulatory reforms, improved underwriting discipline and wider use of digital channels have enhanced operational efficiency.

Dr Minja further stated that innovation, particularly in microinsurance and inclusive products, is helping to broaden access to insurance services.

Such initiatives are expected to deepen market penetration and improve financial inclusion across different income groups.

The development also supports national objectives aimed at strengthening financial resilience among citizens and enterprises.

The director for compliance and actuarial services at the Tanzania Insurance Regulatory Authority, Mr Alex Rocky, said the results build on a positive trend observed over recent years.

He explained that continued economic expansion and increasing appreciation of insurance as a risk management tool have driven growth.

Stronger regulatory oversight has improved compliance with insurance laws and capital requirements. Major players have strengthened their balance sheets, while others are exploring mergers and acquisitions to enhance efficiency and competitiveness.

Mr Rocky added that continued development of product guidelines, expansion of distribution channels and increased adoption of technology are expected to further improve service delivery.

Integration with government systems is also anticipated to streamline operations and enhance monitoring of mandatory insurance covers.

Industry stakeholders have highlighted the need for closer collaboration across the insurance value chain.

This includes intermediaries, garages, assessors and other service providers. Such collaboration is expected to improve customer experience and strengthen public trust in insurance services.

Analysts observe that the sector’s improved top- and bottom-line performance signals a shift from volume-driven growth towards a more sustainable model.

This model is anchored on efficiency, better risk pricing and structural transformation.

However, maintaining this momentum remains a key challenge. Strengthening transparency, improving capital positions and delivering long-term value to policyholders will be critical to sustaining progress in the years ahead.