A group of Lebanese and other Arab investors have made a bid to purchase no less than 67% of Arabia Insurance, according to a letter sent to shareholders of the company last week.
The overall Lebanese insurance industry saw total life and non-life premiums of $1.63bn in 2019, constituting a decrease of 5% from $1.71bn in the previous year, according to a report in Lebanon This Week published by the Economic Research & Analysis Department of Byblos Bank. In comparison, in 2018, the industry grew by 3.6%.
Demand for medical insurance in Lebanon will remain strong because people buy insurance for protection, says Beirut-based international actuary Ibrahim Muhanna.
In a pessimistic scenario in Lebanon's current economic situation, up to 17 insurance companies, out of 48, would have their equity completely depleted if a 50% haircut on deposits with banks is implemented in some form by the government, says Beirut-based international actuary Ibrahim Muhanna.
Total life premiums generated by 32 life insurers in the Lebanese market reached $491.7m in 2019, constituting a decline of 9.2% from $541.5m in 2018, according to an annual survey by the Al-Bayan magazine of the insurance sector in Lebanon.
The Association of Insurance Companies in Lebanon (ACAL) has proposed that wef 1 May, insurance companies will collect premiums in US dollars or the equivalent in Lebanese pounds according to the market exchange rate instead of the official peg.
Lebanese Minister of Economy, Mr Raoul Nehme, called on insurance companies to cover COVID-19 in their insurance plans, stressing the need for "all parties to play their part in providing appropriate support in view of the economic and living conditions the country is going through".
The gross written premiums of 50 licensed insurance companies in Lebanon reached $1.61bn in 2019, constituting a decrease of 4% from $1.68bn in 2018, according to data released by the Insurance Control Commission.
Total non-life premiums generated by 44 insurance companies in Lebanon reached $1.13bn in 2019, down by 3% from $1.17bn in 2018, constituting the first annual decline on record.
The Ministry of Economy & Trade has barred insurance companies in Lebanon from distributing dividends to shareholders for financial year 2019, or any dividends accumulated in previous years.