Written by S. Es-siari |
Wafa Assurance’s top management organized the press conference in webinar mode to unveil the half-year results for the 2022 financial year. This conference is also an opportunity to recall the highlights of the sector.
To this end, Meriem Benkhayat in charge of the finance division at Wafa Assurance recalls that on the regulatory level, payment institutions are authorized to market inclusive insurance products. Also, insurance products can be marketed online either through an electronic or handwritten signature.
With regard to the risk-based solvency (SBR) project, ACAPS presented the quantitative study of pillar 1 which is still being reviewed by the sector. The work launched today by ACAPS relates to financial communication.
Indicators for the insurance sector as a whole also bring out the level of activity before the crisis. As evidenced by the financial achievements: turnover increased by 10% in 2021. The financial result rebounded by 65%. Net income increased by 35%. The ratio of unrealized capital gains on investments improved by 15.5% in 2021. The solvency margin is also comfortable compared to the regulatory minimum. There is also a deterioration in claims and a return to pre-pandemic levels.
With regard to Wafa Assurance, the activity on 1er half of 2022 was characterized by a very good sales momentum in the business market with very good contract renewals.
On the numbers side…
Regarding the consolidated figures, as of June 30, 2022, the Wafa Assurance Group achieved a consolidated turnover of 5,894 MDH, up 7.7% driven by the performance of the activity in Morocco and internationally.
In Life, the consolidated turnover amounted to 2,990 MDH, up 7.7% driven by the good dynamics of activity in Morocco and the good performance of international activity.
In Non-life, the consolidated turnover amounts to 2,904 MDH, up 7.6% from the performance achieved in all the Property and Casualty branches in Morocco and abroad.
Net income stands at 554 million dirhams, up sharply by 47.4% compared to 2021, driven by the improvement in the technical and financial indicators of Wafa Assurance Maroc and the increase in the profitability of international subsidiaries.
Consolidated shareholders’ equity amounted to 8,563 MDH, down 6.9% due to the drop in the level of unrealized capital gains recognized in shareholders’ equity under IFRS in a bearish stock market context.
In social terms, the half-yearly turnover stands at 5,352 MDH, up 1.8%. Life turnover was almost stable compared to the 1st half of 2021 at 2,774 MDH (-0.9%) driven by the momentum in Protection which mitigated the decline in Savings activity.
Non-Life turnover stands at 2,577 MDH, up 4.9% compared to 2021.
“Results are up sharply driven by the improvement in technical indicators and the increase in financial income,” summarizes Ramses Aroub, CEO of Wafa Assurance.
The Life result stands at 246 MDH, up 43.9% following the improvement in claims. The Non-Life result stands at 349 MDH, an improvement of 50.1%, marked by the increase in financial income. Given the improvement in the non-technical result, the company’s net result for the 1st half of 2022 stands at 456 million dirhams, up 26%. Wafa Assurance continues to develop its activities and confirms its leadership and the solidity of its fundamentals.
What should be remembered?
As for Takaful, Wafa takaful started its activity in June 2022 with the marketing of its products in partnership with Dar Assafaa. It started with two products: a participatory insurance contract to guarantee the payment of death or disability capital to cover Murabaha financing and a product intended to cover customers benefiting from Murabaha real estate financing to cover the property against risk of fire, water damage and glass breakage…
Wafa Takaful also signed in June with BTI Bank for the marketing of its participatory products in its network. It appears at the end of June, a capture rate of 42% with nearly 3,500 contracts.
In terms of inclusive insurance, the company is continuing its internationalization. For the activity launched in Egypt in 2021 alone, the figures achieved are in line with the forecasts set by top management.
Internationally, the subsidiaries achieve a turnover of nearly 600 million dirhams, representing a contribution of 10% to the consolidated turnover.
By country and by branch, the top management notes a good performance of the life business and a ramp-up of non-life subsidiaries.