Algerian state owned reinsurer Compagnie Centrale de Reassurances (CCR) has posted a turnover of DZD32,077m ($270m) in 2018, an increase of 8.84% over 2017, according to the company in its annual report for 2018.
This growth was driven by both national and international acceptances. Domestic and international sales increased respectively by 7.75% and 16.25%.
Domestic acceptances by CCR amounted to DZD27,700m in 2018. This was 86.35% of total premium income, compared to 87.22% in 2017.
The Algerian economy showed a growth rate of 2.3% in 2018 against 1.4% in 2017. The domestic insurance market in Algerian saw total turnover of DZD143bn in 2018 against DZD140bn in 2017, according to preliminary official figures. This represented growth of 2.2% in 2018 against 3.6% in 2017.
In the reinsurance sector as a whole, the 2018 estimated ceded premiums of the domestic market increased by 7.18% compared to 2017, to DZD39bn from DZD36bn. CCR’s 2018 share in this market remained the same as in the previous year, i.e. 71%.
The share of compulsory cessions fell from 60.43% in 2017 to 56.09% in 2018.
International acceptances by CCR stood at DZD4,377m in 2018. This represented a share of 13.65% in 2018 compared to 12.78% in 2017. The growth in international business reflects the marketing and commercialisation efforts of the company, as part of the implementation of its commercial development policy on the international market, said Hadj Mohamed Seba, CCR chairman and CEO.
CCR sees international acceptances as the main source of medium and long-term growth. Thus, the reinsurer projects in its business plans the implementation of a commercial policy that would allow the realisation of continuous growth of international business.
Mr Mohamed Seba said that in 2018, international reinsurance market conditions were difficult due to losses caused by the occurrence of several catastrophic losses. However, the impact on the price increases was moderate, due to competitive alternative reinsurance.
CCR's profit in 2018 was DZD3,094m, 5.23% higher than the DZD2,941m reported for 2017. The growth was driven by investment income which climbed by 23.52% in 2018 to DZD1,993m from DZD1,613m in 2017.