Wafa Assurance, the insurance arm of Morroco's biggest bank Attijariwafa Bank, has issued a profit warning about its 2018 results.
Wafa Assurance, which is among the top three insurers in the kingdom, is expecting a net profit of MAD600m ($62.6m) for this year, which would be the poorest performance ever recorded by the insurer since 2015. The figure will be down by 25% compared to the net result for 2017, despite higher premium income.
According to a statement issued by Wafa Assurance, this is due to higher claims last year, particularly in the motor business. The subsidiary of Attijariwafa Bank announced an increase in net claims of MAD350m last year. Other insurers too are anticipating increases in motor losses, according to local media reports.
In 2017, the insurer posted net profits of MAD819m, a dip of 2.6% from 2016. Premiums written stood at MAD8.05bn in 2017, 10% higher compared to MAD7.3bn in 2016.