The insurance sector recorded, in 2020, a net income of 3.2 billion DH, down 18.7% compared to 2019, according to the Authority for the Control of Insurance and Social Welfare (ACAPS).
At the origin of this decline, direct insurers who recorded a net income of 2.9 billion DH, down 21%, while the net income of exclusive reinsurers improved by 11.7% to 318 million DH, indicates the ACAPS in its annual report 2020 presented Wednesday by the interim president of the Authority, Othman Khalil El Alamy., to the Head of government, Aziz Akhannouch.
Regarding the drop in net income of direct insurers, it affected both the technical result (-12.6%) and the non-technical result (-424.5%), underlines the ACAPS. The decline in technical result concerned life insurance (- 22.7%) and non-life insurance (- 10.1%) and results from the combined effect of the fall in the financial balance of 33%, ‘Improvement of the operating margin from 208.6% to 1.9 billion DH and the appreciation of the reinsurance balance by 10.1% to 1.2 billion DH, also notes the report.
Under the effect of the drop in net income, the sector’s rate of return on equity (net income / equity) fell from 9.6% in 2019 to 7.5% in 2020.