Algeria: Overall increase in the insurance business in Q1 2019

The Algerian insurance market has experienced a positive trend on several indicators, according to the business report of the first quarter of 2019 made public by the National Insurance Council.

Indeed, the document reports an additional production of 2.8 billion Algerian dinars (about 23.5 million USD), an increase of 7.1% year-on-year. International acceptances increased by 14.5%, with an amount of 855.4 million DA.

Between March 31, 2018 and March 31, 2019, the compensation paid by all insurance companies increased by 14.8% for a total amount of DA 21.5 billion. But the claims payable amounted to 75.8 billion DA at the end of March 2019, against 79.5 billion a year earlier.

With a share of 88.7%, property and casualty insurance still dominates the market. Their sales at the end of the first quarter of 2019 reached DA 37.7 billion, an increase of 6.2% year on year.

By branch, we note that the « Automobile » insurance collects 57.2% of the production of property and casualty insurance and thus marks an increase of 3.8%. This activity was driven by mandatory guarantees, which are 60.7% higher than on 31/03/2018.

With 57.2% of the production of property and casualty insurance, « Automobile » insurance collects 57.2% of the production of property and casualty insurance and shows an increase of 3.8%, driven by the mandatory guarantees that change from 60 , 7% compared to 31/03/2018, unlike the optional guarantees, which occupy a 70.6% share of the portfolio of the branch, declining by 9.5%.

But the « Transport » branches did better with an increase of 17.4% following the significant growth recorded in the « Air transport » sub-branch (+ 1489.6%), generated by the « Air Corps », due to the subscription of new insurance contracts covering Civil Protection helicopters. Like the « Agricultural » branch, which closed the first quarter with nearly 700 million DA, against 625.4 million DA on 31 March 2018, an increase of 11.9%.

Recall that the cumulative turnover of insurance companies operating in the country reached 142.6 billion Algerian dinars (over a billion USD) at the end of 2018, against 139.5 billion the previous year. That is a slight increase in activity (2.2%).

LEAVE A REPLY

Please enter your comment!
Please enter your name here