Morocco: Outlook deemed positive for 3 listed insurers
Source: Middle East Insurance Review | May 2017
Earnings of Morocco’s three listed insurers – Atlanta, Saham and Wafa – are expected to pick up this year, after a slight increase in 2016, according to Upline Securities in a review.
The three insurers are expected to generate a turnover of MAD15.8 billion (US$1.6 billion), up by 7.9%, and an aggregate net profit of MAD1.59 billion this year, an improvement of 19.6% over 2016.
Upline’s analysts believe that the insurance industry in Morocco has all the necessary ingredients to accelerate its development, in particular a regulatory framework increasingly adapted to the needs of insurers and insureds; strong growth potential given a relatively low penetration rate (3.1%); and an anticipation of the continued upward trend in the equity market, which is an important source of profits for operators.
However, a new development could hinder the development of companies in the future. This is the new risk-based prudential regime recently adopted by the Supervisory Authority of Insurance and Social Security (ACAPS) that could require them to have more capital. M
MAD1 = US$0.10