The insurance sector in Algeria reported a total revenue of DZD57.3bn ($430m) in the first quarter of this year, rising marginally by 0.2%, compared to 1Q2025, according to data from the National Insurance Council (CNA).
The flat growth seen in the first three months of the year masks contrasting dynamics between sectors, with a growing role for takaful and an increased reliance on international reinsurance.
Takaful contributions jumped by 53% in 1Q2026 to DZD358.3m, compared to 1Q2025, while international reinsurance acceptances grew by 26.1% year on year to reach a revenue of DZD4.6bn.
In 1Q2026, property and casualty insurance companies remained the main driver of the sector with a share of 80.2% of total production, totalling nearly DZD46bn in premiums, down by 1.4% year on year.
Life insurance, for its part, recorded a turnover of DZD6.4bn, down by 4.5% year on year.
Takaful
Islamic insurance is gradually establishing itself as one of the few dynamic segments of the Algerian market. Officially introduced in 2021 following the publication of the executive decree regulating the sector, takaful is attracting clients who were previously hesitant about conventional insurance products, particularly in rural areas and among professionals. Companies operating in this niche, whether dedicated subsidiaries or takaful windows of conventional insurers, are experiencing significant growth in contributions.
A combination of factors can explain this breakthrough. The parallel development of Islamic banking and the proliferation of dedicated counters in public institutions fuel the demand for compatible insurance coverage.
International reinsurance
The second factor supporting the market lies in the growing role of international reinsurance. Faced with significant industrial risks, particularly in hydrocarbons, infrastructure, and maritime transport, local insurers are ceding a substantial portion of their liabilities to foreign reinsurers. The Central Reinsurance Company (CCR), a long-established state-owned reinsurer, retains its dominant position, but international cessions have increased to cover peak claims and natural disasters.
Motor insurance, property damage under pressure
The motor branch, traditionally the leading line in the Algerian market, is experiencing a slowdown. The decline in new vehicle imports and the aging of the country's vehicle fleet are directly affecting new insurance policies. Campaigns to combat fraud and stricter liability insurance rates have not yet had their full effect on premium volumes.
Property damage claims remain contained, but industry players anticipate an increase in compensation related to weather events, particularly forest fires and floods that regularly strike the north of the country. Insurers are advocating for an acceleration of mandatory coverage against natural disasters.