Premiums in the Algerian insurance market declined by 7.9% to DZD36.3 billion (US$329.6 million), including international acceptances, from January to March this year, compared with the corresponding quarter in 2016, as the economic slowdown hits the sector.
In the first three months of 2017, non-life insurance revenue amounted to DZD32.5 billion, down by 8.6% from the first quarter of 2016. Most classes reported a decline in the non-life sector which had a market share of 91.3%.
Provisional data from the National Insurance Council (CNA) showed that motor business, which accounts for 60.9% of insurers’ sales, fell 5.8% to DZD19.8 billion in 1Q due to the drastic drop in the import of new vehicles in the quarter.
The Fire and Risk division, which accounts for 31.6% of the insurance market, was also heavily impacted. Its turnover shrank by 14.7% to DZD10.3 billion from January to March.
Life insurers reported a turnover of more than DZD3 billion during the first quarter of 2017, down 5% from the same period of 2016. The fall is attributed to a plunge in group insurance.
TALA, a subsidiary of the CAAT, alone posted premium revenue of DZD2 billion, with the rest shared by the seven other life insurers.
The Algerian economy, which is mainly state-run, has seen its energy revenue, which accounts for 60% of the state budget, more than halved due to the slide in crude oil prices, forcing the government to cut spending and implement economic reforms. M
DZD1 = US$0.01