Insurance sector showed robust growth before Hurricane Melissa
Published:Friday | January 30, 2026 | 12:07 AM
Jamaica’s insurance industry posted strong gains in the year leading up to Hurricane Melissa, with total sector assets reaching $614.6 billion by September 2025, up 9.5 per cent from the prior year.
The capital of the sector also remained strong.
“Overall, the life insurance sector remained solvent and adequately capitalised,” stated the Financial Services Commission (FSC) in its Insurance Sector Quarterly Review. “Similar to the life insurance industry, the general insurance industry remained solvent and adequately capitalised.”
The review captured a market in expansion mode – but one that would soon face its greatest test. Hurricane Melissa, a Category 5 storm, slammed into the island last October, likely triggering a wave of claims that could fundamentally alter the sector’s trajectory. The details of the impact are pending the release of financials for the December quarter.
Invested assets across the industry rose 6.7 per cent during the 12-month period, with life insurance holdings growing 7.4 per cent and general insurance up 2.6 per cent, according to the FSC report.
The life insurance segment led growth, with total assets climbing 9.3 per cent as companies expanded their investment portfolios. Profit before taxes surged 29.2 per cent, driven by an 11.9 per cent rise in insurance revenue from Premium Allocation Approach and General Measurement Model contracts –two accounting methods under international financial reporting standards that handle short-term and complex long-term policies respectively.
Insurance liabilities in the life sector grew 8.3 per cent to $293.3 billion, while reserves jumped 40 per cent to $7.9 billion.
General insurers saw assets rise 10 per cent to $115.2 billion, fueled by increases in cash equivalents and reinsurance contract assets. Those companies reported a 48.3 per cent jump in pretax profit to $3.6 billion, largely from lower net expenses related to reinsurance and service costs.
The FSC oversees 17 registered insurance companies: six life insurers and 11 general insurers, with 10 of the latter fully operational while one operated as a branch. “All companies” in both sectors remained above regulated capital minimums as of September, the FSC said.
The hurricane’s timing, however, raises questions about the durability of those gains. Major storms typically force reinsurers – the companies that insure insurers –to pay out claims, which often leads to higher premiums passed down to policyholders in subsequent years.