Wafa Assurances took advantage of the market recovery to generate solid growth in 2021 thanks to the recovery of the financial markets, despite the return of claims to historic levels after the drop recorded in 2020 linked to the effects of confinement.
Wafa Assurance held a press conference on Wednesday to present its annual results for the year 2021. Accompanied by Meriem Benkhayat, executive director in charge of the finance and strategy division, the group’s CEO, Ramsès Arroub, presented the highlights of the sector in 2021 and unveiled the group’s key indicators and main achievements.
With an exclusive network of 296 points of sale, Wafa Assurance succeeded in crossing the 9 billion dirhams (MMDH) mark in 2021. Up 8.5% compared to 2020, turnover stood at 9.09 billion dirhams. Note that this figure is higher than that achieved in 2019, amounting to 8.85 billion dirhams.
The group achieved 55.1% of its turnover in the Life segment with 5.01 billion dirhams, and 44.9% in the Non-Life segment, ie 4.08 billion dirhams.
In detail, premium income from the Life segment increased by 14.5%, driven mainly by growth in savings, which represents 78.3% of this revenue, as well as by the performance of pension products via bancassurance.
The Non-Life business grew by 2%, driven by the momentum in the business insurance market. It should be noted that 59.5% of Non-Life turnover is generated outside the motor insurance market.
The financial result increased significantly over the period, rising from 1.07 billion dirhams to 1.54 billion dirhams (+43.9), thanks to the recovery of the equity market. In the Non-Life segment, the financial result amounted to 553 MDH, i.e. almost four times that recorded in 2020. In Life, an increase of 3.2% was recorded, thanks in particular to the profit-sharing mechanism in savings.
The technical result fell for its part, from 704 MDH to 609 MDH (-13.5%), following the return of the loss ratio to historic levels and the tightening of the rules for provisioning unpaid debts.
Result of the races, the group recorded a net profit of 536 MDH, up 32.6% compared to 2020, but below that achieved in 2019. Equity amounted to 6.17 billion MAD, up 3 .1%, thanks to the integration of the 2021 result. The solvency margin remains resilient, and represents three times the regulatory margin excluding unrealized capital gains.
In view of the results recorded and the outlook for the company, the Board of Directors has decided to propose to the Ordinary General Meeting the distribution of a dividend of 120 dirhams per share.
For the first time, Wafa Assurance has finalized and published its consolidated accounts in IFRS standards. The scope of consolidation includes the group’s subsidiaries in Morocco and abroad.
Thus, the consolidated turnover for the 2021 financial year amounts to 9.79 billion dirhams, up by 7.8% driven by the growth of activity in Morocco and the good performance of the Life subsidiaries internationally. The contribution of subsidiaries to consolidated revenue will increase in 2021 to 14.1% compared to 12.5% in 2020.
In detail, 4.4% of turnover was achieved in Tunisia and 7.1% in three countries of the CIMA zone, namely, Senegal, Ivory Coast and Cameroon.
Net income for the 2021 financial year stands at 424 million dirhams against 453 million dirhams in 2020, down 6.4% under the effect of the return of Non-Life claims to historical levels after the drop recorded in 2020 linked to the effects of confinement and the increase in claims in Life.
Equity group share amounted to 9.2 billion dirhams at December 31, 2021 against 8.2 billion dirhams in 2020, and increased by 12% under the effect of the strengthening of unrealized capital gains on the group’s financial assets.
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