Alliance assurances validates the payment of a dividend of 35 dinars


Alliance assurances announced this Wednesday, June 15 positive financial results in 2021, despite a year ” challenging at all levels, due to the pandemic and delays in the Algerian economy.

2021 was a trying year on all levels, due to the pandemic. We mourn the loss of friends, colleagues, family members. We went through very scary and painful times. We always think of them; to their families and to all Algerians who have borne the loss of human life. This was not without consequences too, on the economic crisis and on our market. The latter has been severely impacted by confinement and all the restrictions that have resulted from it. “, declared the boss of the private company Hassen Khelifati during the ordinary meeting of the Joint General Assembly which was held on June 2.

Alliance assurances achieved a turnover of 4.823 billion dinars against 4.728 billion dinars in 2020, an increase of 2%.

As for the market, overall, it recorded growth of +4.8% with a decline in motor vehicles of –3.8%. The market was driven by the P&C branch, in particular international reinsurance, which readjusted its rates upwards (more than 30 and 40%) for coverage of major national risks said Alliance Assurances in a statement.

Dumping

The private company adds that a ” more detailed analysis of the branches tells us that everything local has regressed due to dumping and non-compliance with minimum tariffs and this applies to all branches “.

In addition, Alliance assurances ended the year 2021 with a result of 502 million dinars against 481 million dinars in 2020, i.e. a growth of 4.5%.

This increase will benefit the shareholders of the company, listed on the Algiers Stock Exchange. For dividends to be distributed, Alliance assurances indicates that the value of the dividend per share has been set at 35 dinars against 32 dinars in 2020, i.e. a “ annual return of more than 9% net compared to the current share price “. “ These dividends will be paid within the regulatory deadlines, i.e. before September 30, 2022 “says Alliance insurance.

The private company notes that its action ” is in high demand and its value has increased during the year (almost 60%) compared to the same period of 2021 “.

Alliance Assurances is pleased to continue to ” create value for its shareholders and the stock market, by driving a steady dynamic “.

Alliance Assurances claims to be managed to achieve positive results thanks to the effort to control expenses, better control of claims to fight against fraud, continuous improvement in the quality of services and reduction of reimbursement times “.

A special effort has been made in terms of product and service innovation as well as the maintenance of a communication effort towards all stakeholders. “, she added.

For the negative aspects, Alliance assurances regrets that the situation of the Algerian insurance market remains “ unchanged ” and the ” same problems persist despite numerous calls for urgent and effective intervention by the regulatory authority to put an end to the various distortions and abuses that persist »

To illustrate her remarks, she cites the potential of the insurance market in relation to national GDP and the penetration rate achieved in equivalent markets, which is the ” lower, i.e. 0.7%, while it is 3 to 4% at the African level, 6 to 7% at the global level and more than 1.5% at the level of the Arab world “.

Untapped potential

Some experts value the potential of the Algerian insurance market at between 5 and 7 billion USD per year, while it barely manages to exceed 1 billion USD “, underlines Alliance assurances.

For the private company, this potential untapped calls out to all the players in order to ” identify the why and find the strategic, regulatory and operational responses to be provided in order to release the potential and activate the leading role of the insurance sector in capturing quasi-savings in its capacity as an institutional investor in the financial market, for continue to irrigate investment “.

Caution

Alliance Assurances deplores the practices observed and experienced daily, such as dumping, underpricing, extension of reimbursement periods, customer dissatisfaction, the inability of insurance companies to meet their commitments for derisory premiums collected, the inadequacy of tariffs, in particular mandatory, versus financial cost and frequency of claims, the accumulation of claims on policyholders that are often difficult to recover, the discrimination operated on the private sector which prevents it from accessing certain public markets, even the most modest ones , failure to respect collective professional commitments, etc. “. ” All this brings a lot of uncertainty to the solvency and the fundamental financial balances of the market. “, warns Alliance assurances.

She recalls having advocated and campaigned for the rapid establishment of an Independent Regulatory Authority as well as the revision of fundamentals such as the prohibition of discrimination and the sale on credit; revision and indexation of tariffs versus compensation scale, reduction of reimbursement times and improvement of service quality; the introduction of innovation in products, services and means of payment as well as all aspects related to the liberalization of initiatives by market players “.

For Alliance Assurances, the cover “ effective ” and ” fast » of these sectoral demands will allow the Algerian insurance market to « to take off ” and of ” exceed the glass ceiling of 1% penetration rate in relation to GDP “.



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