One of Morocco's biggest insurers, Wafa Assurance, has shown flat growth in premium income in the first half of this year amidst the COVID-19 pandemic.
1H2020 premium income grew by 0.8% to MAD4,697m ($511m), compared to the corresponding period last year, according to a statement lodged with the Casablanca Stock Exchange.
The impact of the COVID-19 pandemic fell largely on the second quarter with premium income plunging by 12.5% to MAD1,727m ??compared to the same period of 2019. The 2Q2020 premium income drop neutralised the growth observed in the 1Q2020 of 10.6%.
The weak performance of financial markets, the cancellation or suspension of dividend payments by companies and the economic slowdown have had significant impact on the company's results.
Taking into account these factors, the net result for the 1H2020 is expected to decrease significantly compared to that of the 1H2019, said the company.
If market conditions continue to be difficult till the end of the year, the 2020 full-year net income is also expected to drop significantly.
Wafa Assurance is said to have solid fundamentals to meet its commitments, despite the various unfavourable impacts that the pandemic causes.