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Algeria: Premiums grew 2.4% to $1.2 bln in 2016

Source: Middle East Insurance Review | Jun 2017

Premiums of the Algerian insurance market grew 2.4% om 2016 to DZD133.9 billion (US$1.2 billion) [including international acceptances], compared to the previous year, said Mr Abdelhakim Benbouabdellah, Secretary of the National Insurance Council and Mr Brahim Djamel Kessali, President of Algerian Union of Insurance and Reinsurance Companies at a media conference.
 
   Premium growth rates in 2016 and 2015 were the lowest in nearly 10 years, industry observers told the local media. In 2015, the insurance market grew by 2.2% with the total turnover reaching DZD130.82 billion.
 
   In 2016, non-life business generated DZD119.4 billion in premiums, a marginal increase of 0.6% y-o-y, and accounted for 89.2% of total premiums. 
 
   The largest class of business, motor insurance, saw premiums decline by 1.4% to DZD65.3 billion, accounting for 54.6% of the total market. Agriculture insurance also posted a decline. Classes of business that expanded included credit and transport.
 
   The total compensation paid by insurers last year amounted to DZD59.9 billion, an increase of 12% with the share of the motor business estimated at 73.2%.
 
   Meanwhile, insurance business in the first three months of this year shrunk, largely due to a plunge in vehicle imports, said industry players. Demand for home insurance has also fallen. The country’s current economic conditions have led people to rearrange their priorities, they said. The government has also tightened its belt and frozen major projects as its coffers have been hit by low energy prices. 
 
   Algeria’s economy grew by 4% last year, and the government has cut spending by 14% this year, after a 9% reduction in 2016. M 
 
DZD100 = US$0.92
 
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