News Middle East10 Mar 2020

Lebanon:Non-life insurance sector posts first annual decline in premiums

10 Mar 2020

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.

In comparison, non-life premiums grew by 3.4% in 2018, 2.3% in 2017 and 3.1% in 2016, according to a report in Lebanon This Week by the Economic Research & Analysis Department of Byblos Bank.

The decline in non-life premiums last year reflects the reduced ability of policyholders to pay their premiums, and the difficulties facing insurers in transferring premiums to international reinsurance companies. MAINS Insurance, Trust Insurance and Liberty Insurance suspended their operations last year.

An annual survey by Al Bayan magazine of the insurance sector in Lebanon shows that Bankers Assurance ranked in first place in terms of premiums with $110m in non-life premiums in 2019 among 44 general insurers. Fidelity Assurance & Reinsurance with $94m in non-life premiums , and Allianz SNA with $82.6m, rounded up the top three.

The top 10 non-life insurers in Lebanon in 2019 were:

Insurers

2019 rank

2018 rank

Bankers Assurance

1

1

Fidelity Assurance & Reinsurance

2

2

Allianz SNA

3

5

MedGulf

4

4

AXA Middle East

5

3

GroupMed

6

9

Libano Suisse

7

6

LIA Insurance

8

8

Arope

9

7

Al Mashrek

10

10

Source: Lebanon This Week

The top 10 accounted for 64.7% of the non-life insurance market in 2019 relative to 63.8% in 2018 and 64% in 2017.

In addition, six out of the top 10 insurers posted declines in their non-life premiums last year, while the premiums of the remaining four insurers increased in 2019.

The composition of the top 10 insurers was unchanged from 2018, but among them, rankings have changed for some between 2019 and 2018.


 

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