Insurance in Morocco
In 2022, the equity capital of insurance and reinsurance companies in Morocco increased by 2% to 45.5 billion.
Insurance companies in Morocco are well-capitalized, New statistics from ACAPS, released on May 5, confirm this. Our national companies have 45 billion in equity.
This growth is mainly carried by direct insurers who have seen their equity strengthen by 3.5% to reach 42.7 billion dirhams, while those of the exclusive reinsurers have dropped by 16.8%, following the exit of an operator active in this segment.
In addition, the net income of the insurance sector has increased by 1% to reach 4.3 billion dirhams. At the origin of this progression, the non-technical result which showed a surplus of 626 million dirhams against a deficit of 151 million dirhams.
Insurance in Morocco
However, the recorded progression conceals contrasting evolutions between the direct insurers which saw their net result increase by 1.8% to 4 billion dirhams, while that of the exclusive reinsurers underwent a fall of 9.5% to 282 million dirhams.
At the end of 2022, the outstanding technical reserves of insurance and reinsurance companies have exceeded the 200 billion mark to reach 204.3 billion dirhams, up by 5.3% compared to 2021. Of this outstanding amount, direct insurers have concentrated 94%, i.e. 192.1 billion dirhams. By branch, the life technical reserves concentrated 59% of the outstanding amount, up by 8% to 121.2 billion dirhams. As for non-life technical reserves, they amounted to 83 billion dirhams (+1.5%), mainly made up of provisions for claims to be paid (83%).
The allocated investments of the insurance and reinsurance companies increased by 5.1% in 2022 to reach 206.2 billion dirhams in inventory value (against 196.2 billion dirhams at the end of 2021), i.e. 72.5% of their total balance sheet. Overall, the investment strategy of direct insurers has remained unchanged with a little more than half of their investments invested in interest rate assets (50.2%) followed by equity assets (44.3%) and real estate assets with a small share (2.8%).
Insurance in Morocco
However, the profitability of financial investments has dropped significantly, with net income down by 21.7% to 6.9 billion dirhams, due to the downturn in the stock market.
In detail, the financial balance of direct insurers deteriorated by 23.3% to 6.3 billion dirhams, while that of exclusive reinsurers increased by 2.2% to 575.6 million dirhams.
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