A net profit improved by 35% in 2021

The 9th joint annual report Bank Al-Maghrib (BAM), Insurance and Social Security Supervisory Authority (ACAPS) and Moroccan Capital Market Authority (AMMC), on financial stability, shows an improvement of 35%, i.e. 3.9 billion dirhams (MMDH), the profitability of the insurance sector.

The improvement concerned both the technical result (+0.8 billion dirhams) and the non-technical result (+0.3 billion dirhams), said the report, specifying that the two Life and Non-life branches posted a result technique up 30.9% and 16.8% respectively.

The increase is due to the combined effects of the rebound in the financial balance of 64.7%, the decline in the operating margin of 23.3% due in particular to the increase in claims in motor insurance, as well as the decline in the balance of reinsurance of 86.6% against insurers, explains the same source.

Including exclusive reinsurers, net income amounted to 4.2 billion dirhams, up 31.4% compared to 2020.

The 35% increase in net income combined with a smaller increase in equity of 2.9% helped raise the rate of return on equity (ROE) to 9.5%, i.e. a level close to that recorded before the outbreak of the health crisis.

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