Wafa Assurance has maintained its top position in the Moroccan insurance market in terms of premiums for the ninth consecutive year last year, when it reported a turnover of MAD7.3 billion (US$743.8 million), an increase of 14.2% over 2015.
These results gave Wafa Assurance a 21% market share last year.
Mr Ali Harraj, President and CEO of Wafa Assurance, told L’Economiste that 70% of the company’s growth was generated by the life branch, which was in turn driven by the savings business, which achieved an exceptional performance of 21% thanks to bancassurance. Non-life business at Wafa Assurance posted a sustained growth rate of 9.6%.
Last year, professionals and individual customers accounted for around 75% of the company’s growth, generating a revenue of MAD5 billion, up by 15.9%. Corporate customers accounted for a revenue of MAD2.3 billion, up by 10.6%.
The results helped Wafa Assurance report a net profit of MAD841 million, an increase of 5.2% over 2015.
Looking broader at the country’s insurance industry, total premiums increased by 15.4% to MAD35.1 billion last year. The growth in 2016, which was faster than the 7% posted for 2015, was driven largely by a buoyant life insurance market.
Mr Harraj attributed the growth to a combination of several factors, including favourable market conditions. Firstly, banks no longer suffered from a lack of liquidity. Secondly, households are increasingly aware of the need to save not only to compensate for the inadequacy of the compulsory pension scheme, but also to finance the education of their children.
He said that life insurance in Morocco continues to expand, and posted a total revenue of MAD14.3 billion last year, representing growth of 35.4%. Wafa Assurance remained the top insurer in the life segment with a market share of 28.3% and a turnover of MAD4 billion last year.
Mr Harraj is confident that life insurance still has room to grow, especially among professionals. Insurance penetration in Morocco is 1.1% for the life sector and 2.1% for the non-life sector. M
MAD1 = US$0.10