N° 165 November 2019 www.atlas-mag.comAtlas Conseil International Atlas Magazine www.atlas-mag.comInsurance news from Africa and the Middle East
Editorial www.scor.com Boeing, a claim of unprecedented scale
welling on the air disasters of Lion Air and D Ethiopian Airlines, we can sense an unprecedented evolution pertaining to claim trends. Recent news highlights some dysfunctions that confirm the responsibilities of Boeing and the US certification ZOOM p. 2 agency, hence the need for some clarifications.
A COMPANY It is noteworthy, first of all, that Boeing is a fundamental to the American economy. Founded in A STORY p. 3 - 9 Middle East Insurance 1916, the Chicago firm had a market capitalization of 193.2 billion USD at the end of 2018. It is the leader of Company American know-how in the field of civil and military aeronautics. FOCUS p. 10 - 23 Renewal 2020 of Second clarification, the 737, the world's best-selling aircraft, occupies a prominent place in the Boeing line reinsurance treaties up, being its fetish plane, its real "cash machine". The (1/2) 737 MAX is the fourth generation of the first 737, whose
inaugural flight dates back to April 9, 1967. As of
NEWS p. 24 - 30 December 31, 2018, Boeing's order book reported 5005
Summary Insurance news B737 MAX, or one-third of overall orders.
Third, overconfident about its product and
STATISTICS p. 31 - 33 organization and due to more errors of its Mauritius 2018 programmers, Boeing neglected the training of pilots.
Considering the 737 MAX as a mere copy of the old 737, AGENDA & RESHUFFLES the aircraft manufacturer preferred to save training costs.
p. 34 - 35 Fourth, by delegating the certification work of the new version of the 737 to Boeing engineers, the US Federal Aviation Agency (FAA) is accused of serious breach of its obligations.
Eventually, we end up with a chain of industrial failures. The manufacturer's TPL insurers could have rejected the claim file for serious mistakes and concealment of known defects before delivery of the aircraft. Consequently, Boeing would be the only one responsible for the compensation of all the material, immaterial and corporal damage for the benefit of a plethora of victims: subcontractors, airliners,... not to mention the recourse of the aviation insurers of Lion Air and Ethiopian Airlines, a bill amounting to nearly 20 billion USD. Atlas Conseil International
25, rue Ibn Charaf, 1002, Le Belvédère, Tunis, Tunisia
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CIMA: regulation of Takaful volunteers on board. These latter are staff members of the Direct Line Insurance Group. The tests are insurance carried out under real circumstances with a
The Inter-African Conference of Insurance Markets volunteer and a driver on board who shall be ready (CIMA) has introduced amendments to the to intervene if need be. StreetWise, has received insurance code regulating the Takaful activity in the public funding of 12.776 million GBP (16.42 million CIMA zone. USD) to provide the UK road network with sensors.
The new text provides details on: The most conclusive tests were carried out in the U.S
► the financial scheme applicable to Takaful west coast, where the roads are wider and the insurance, weather is warmer. According to US secretary of ► its operating mode transportation, Grant Shapps, autonomous ► the insurers authorized to underwrite this class of vehicles shall improve road safety and create new business, economic opportunities. ► the proposed coverages (life, non-life and capitalisation), Travel insurance in Europe: low ► the minimum required share capital, which is set at three billion FCFA (5.2 million USD). price/quality ratio
In addition to these points, the amendments According to a survey of more than 100 insurers, the provides further clarifications of the legislative European Insurance and Occupational Pensions framework. Finally, the CIMA leaves it to the Supervisory Authority (EIOPA), reveals many supervisory authority of each member country to deficiencies in travel insurance policies. adapt the new regulation to its market reality. These latter lead to poor consumer service. Distributed by travel agencies these policies, are Driverless cars on British roads subject to excessive fees, sometimes exceeding 50% of the premium, while loss ratios are still very The very first driverless car testing were initiated on low. Hence a low quality/price ratio provided to October 24, 2019 in the UK. Launched by Streetwise, consumers. a consortium led by FiveAI and supported by the On the other hand, the content of the policies does government and the insurer Direct Line Insurance not always comply with the Union’s Insurance Group, the project has allowed autonomous Distribution law. In its report, the EIOPA urges travel vehicles to ride for the first time in the London agencies and professionals to modify their tariffs neighbourhoods of Croydon and Bromley. and comply with European requirements when it comes to the distribution of insurance products. Every day, these experimental cars use the narrow and busy roads of London with one of the 130
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Atlas Magazine . N° 165 . November 2019 2 Atlas
A company, a story Middle East Insurance Co.
Date of creation: 28 June 1962, Jordan
Classes of business: Life and non life
Rating: A.M. Best : « B+» Stable
Middle East Insurance
Is, in 2018 :
a share capital of 31 100 000 USD
a turnover of 57 376 203 USD
total assets of 21 902 000 USD
a shareholder’s equity of 55 442 500 USD
a net result of 2 073 604 USD
a non life loss ratio of 63.3% Samir Farhan Khalil Kawar a non life management expenses ratio of 16.05% Chairman of the board a non life combined ratio of 79.68%
Management Contact
Samir Farhan Khalil Chairman of the board Jabal Amman - 3rd Circle Kawar Head office 14 Zahran Street, P.O. Box 1802 Amman 11118, Jordan Rajai Sweis Chief Executive Officer
Deputy General Manager, Mo'nes Haddad Phone +962 6 5527100 finance Assistant General Manager, Issa Smairat property and engineering Fax +962 6 5527801 Assistant GM, aviation and Odeh Abu Dayyeh marine E-mail [email protected]
Zakariya Ammar Assistant GM, life and medical Website www.meico.com.jo
Nabil Anz Assistant GM, motor
Husam Smair Assistant GM, IT
Atlas Magazine . N° 165 . November 2019 3 Atlas
Shareholding
Samir Farhan Khalil Kawar (20.70%) Axa Company (20.23%) Al Massira Investment Co (9.607%) Jordan Chemicals (4.222%) Investmental and Economical Assets (4.036%) Bank of Jordan - Jordan (3.944%) Joumana Samir Farhan Kawar (3.699%) Raouf Abu Jaber and Sons Co (3.253%) Other shareholders (11.642%)
Main technical indicators: 2014 - 2018
Figures in USD
2014 2015 2016 2017 2018
Gross written premiums 53 892 840 52 792 829 56 381 684 57 918 815 57 376 203
Non life gross written premiums 48 073 565 47 012 132 50 173 104 50 793 655 49 900 641
Written premiums net of 23 273 885 23 045 114 26 356 402 25 778 546 26 520 821 reinsurance
Non life earned premiums 45 892 402 47 643 126 46 891 300 50 250 613 51 188 940
Non life gross incurred losses 30 227 097 25 785 582 30 677 892 28 680 968 32 571 079
Non life gross loss ratio (1) 65.87% 54.12% 65.42% 57.08% 63.63%
Non life management expenses 6 443 262 6 558 215 7 102 906 7 634 819 8 010 636
Non life gross expenses ratio (2) 13.40% 13.95% 14.16% 15.03% 16.05%
Non life combined ratio (3) 79.27% 68.07% 79.58% 72.11% 79.68%
Net result 3 107 539 3 105 676 6 446 809 1 635 185 2 073 604
Exchange rate as at 31/12/2018 : 1 JOD = 1.41044 USD ; as at 31/12/2017 : 1 JOD = 1.40653 USD; as at 31/12/2016 :1 JOD = 1.40641 USD; as at 31/12/2015 : 1 JOD = 1.40520 USD ; as at 31/12/2014 : 1 JOD = 1.40651 USD
(1) Non life gross loss ratio = non life gross incurred losses / non life gross earned premiums (2) Non life gross management expenses ratio = Non life gross management expenses / non life gross written premiums (3) Non life gross combined ratio = non life gross loss ratio+ non life gross management expenses ratio
Atlas Magazine . N° 165 . November 2019 4 Atlas
Breakdown of turnover per class of business: 2014 - 2018
Figures in USD 2018 Class of business 2014 2015 2016 2017 2018 shares
Motor 16 707 486 17 011 552 18 758 879 18 366 383 17 852 008 31.11%
Marine (1) 9 826 074 7 952 160 8 061 459 7 568 978 7 259 734 12.65%
Property damage 13 659 809 13 740 532 13 887 759 14 465 261 14 646 924 25.53%
Third party liability 1 713 205 2 081 228 1 343 067 1 250 335 1 460 515 2.55%
Health 5 847 233 5 911 669 7 839 518 8 890 306 8 501 127 14.82%
Other risks 319 758 314 991 282 422 252 392 180 333 0.31%
Total non life 48 073 565 47 012 132 50 173 104 50 793 655 49 900 641 86.97%
Life 5 819 275 5 780 697 6 208 580 7 125 160 7 475 562 13.03%
Grand total 53 892 840 52 792 829 56 381 684 57 918 815 57 376 203 100%
Exchange rate as at 31/12/2018 : 1 JOD = 1.41044 USD ; as at 31/12/2017 : 1 JOD = 1.40653 USD; as at 31/12/2016 : 1 JOD = 1.40641 USD; as at 31/12/2015 : 1 JOD = 1.40520 USD ; as at 31/12/2014 : 1 JOD = 1.40651 USD
(1) including maritime transport and aviation
Breakdown of 2018 turnover per class of business
Health 14.82% Property damage 25.53%
Motor 31.11%
Third party liability 2.55% Other risks 0.31% Marine 12.65% Life 13.03%
Atlas Magazine . N° 165 . November 2019 5 Atlas
Gross incurred losses per non life insurance : 2014 - 2018
Figures in USD 2017-2018 2014 2015 2016 2017 2018 evolution
Motor 17 154 821 17 153 756 19 168 617 20 762 896 21 057 871 1.14%
Marine (1) 1 277 131 179 481 1 668 496 676 378 2 461 363 262.89%
Property damage 7 248 207 3 812 704 5 142 116 443 638 1 325 682 197.99%
Third party liability 174 299 229 360 112 008 346 506 391 665 12.72%
Health 4 280 785 4 348 737 4 415 371 5 771 858 7 133 082 23.24%
Other risks 91 854 61 545 171 284 679 693 201 416 -70.45%
Total non life 30 227 097 25 785 582 30 677 892 28 680 968 32 571 079 13.25%
Gross earned premiums per non life insurance: 2014 - 2018
Figures in USD
2017-2018 2014 2015 2016 2017 2018 evolution
Motor 15 884 113 16 730 973 17 926 002 18 847 382 17 926 622 -5.15%
Marine (1) 9 781 029 7 915 102 7 537 214 7 841 156 7 625 703 -3.02%
Property damage 12 336 585 14 619 302 13 744 741 14 610 560 14 937 959 1.96%
Third party liability 1 686 813 1 967 179 1 355 896 1 277 627 1 628 732 27.13%
Health 5 839 430 6 011 134 5 994 671 7 344 433 8 839 896 20.03%
Other risks 364 431 399 437 332 776 329 456 230 027 -30.37%
Total non life 45 892 402 47 643 126 46 891 300 50 250 613 51 188 940 1.58%
Exchange rate as at 31/12/2018 : 1 JOD = 1.41044 USD ; as at 31/12/2017 : 1 JOD = 1.40653 USD; as at 31/12/2016 : 1 JOD = 1.40641 USD; as at 31/12/2015 : 1 JOD = 1.40520 USD ; as at 31/12/2014 : 1 JOD = 1.40651 USD
(1) Including maritime transport and aviation
Atlas Magazine . N° 165 . November 2019 6 Atlas
Gross management expenses per class of business: 2014 - 2018
Figures in USD 2017-2018 2014 2015 2016 2017 2018 evolution
Motor 2 447 150 2 565 155 2 797 662 2 929 038 2 989 089 2.05%
Marine (1) 1 172 111 968 344 1 008 838 1 027 816 1 066 865 3.80%
Property damage 1 564 903 1 548 225 1 593 482 1 829 640 2 004 108 9.54%
Third party liability 163 950 203 216 146 738 142 901 168 629 18%
Health 1 032 813 1 220 907 1 504 316 1 657 572 1 744 178 5.22%
Other risks 62 335 52 368 51 870 47 852 37 767 -21.08%
Total non life 6 443 262 6 558 215 7 102 906 7 634 819 8 010 636 4.92%
Exchange rate as at 31/12/2018 : 1 JOD = 1.41044 USD ; as at 31/12/2017 : 1 JOD = 1.40653 USD; as at 31/12/2016 : 1 JOD = 1.40641 USD; as at 31/12/2015 : 1 JOD = 1.40520 USD ; as at 31/12/2014 : 1 JOD = 1.40651 USD
(1) Including maritime transport and aviation
Atlas Magazine . N° 165 . November 2019 7 Atlas
Gross loss ratio per non life insurance: 2014-2018
2014 2015 2016 2017 2018
Motor 108.00% 102.53% 106.93% 110.16% 117.47%
Marine (1) 13.06% 2.27% 22.14% 8.63% 32.28%
Property damage 58.75% 26.08% 37.41% 3.04% 8.87%
Third party liability 10.33% 11.66% 8.26% 27.12% 24.05%
Health 73.31% 72.34% 73.65% 78.59% 80.69%
Other risks 25.20% 15.41% 51.47% 206.31% 87.56%
Total non life 65.87% 54.12% 65.42% 57.08% 63.63%
Gross management expenses ratio per non life insurance: 2014-2018
2014 2015 2016 2017 2018
Motor 14.65% 15.08% 14.91% 15.95% 16.74%
Marine (1) 11.93% 12.18% 12.51% 13.58% 14.70%
Property damage 11.46% 11.27% 11.47% 12.65% 13.68%
Third party liability 9.57% 9.76% 10.93% 11.43% 11.55%
Health 17.66% 20.65% 19.19% 18.64% 20.52%
Other risks 19.49% 16.63% 18.37% 18.96% 20.94%
Total non life 13.40% 13.95% 14.16% 15.03% 16.05%
(1) Including maritime transport and aviation
Atlas Magazine . N° 165 . November 2019 8 Atlas
Combined ratio per class of business: 2014-2018
2014 2015 2016 2017 2018
Motor 122.65% 117.61% 121.85% 126.11% 134.21%
Marine (1) 24.99% 14.44% 34.65% 22.21% 46.97%
Property damage 70.21% 37.35% 48.89% 15.68% 22.56%
Third party liability 19.90% 21.42% 19.19% 38.55% 35.59%
Health 90.97% 93.00% 92.84% 97.23% 101.21%
Other risks 44.70% 32.03% 69.84% 225.27% 108.50%
Total non life 79.27% 68.07% 79.58% 72.11% 79.68%
(1) Including maritime transport and aviation
Evolution of ratios: 2014-2018
100%
79.27% 79.58% 79.68% 80% 72.11% 65.87% 68.07% 65.42% 63.63% 60% 54.12% 57.08%
40%
14.16% 16.05% 20% 13.40% 13.95% 15.03%
0% 2014 2015 2016 2017 2018
Gross loss ratio Gross mangement expenses ratio Gross combined ratio
Sources : Middle East Insurance Co and Mubasher.info
Atlas Magazine . N° 165 . November 2019 9 Focus
Renewal 2020 of reinsurance treaties (1/2)
he renewal of the 2020 reinsurance treaties is taking place in a more relaxed environment T than in the last two years. It is true that 2017 and 2018 have been plagued by a record number of natural disasters, despite some recovery exhibited by main reinsurance markets in 2019. Even though the market has not fundamentally changed, this slight improvement has prompted some traditional players to be optimistic.
Photo credit : Pedro Lastra /unplash
Despite recurring headwinds, major rating trend should stand as a turning point for markets agencies have revised their reinsurance rating stuck for several years in a downward cycle. The upwards, as a sign of improvement of the key other question is whether the losses of recent years elements in the field of pricing, alternative capital, will be enough to reverse the negative trend, with earnings prospects and mergers & acquisitions. The reinsurance supply still in abundance. question is now to determine whether this upbeat
Atlas Magazine . N° 165 . November 2019 10 Focus
Natural disasters in 2018
According to statistics published by Munich Re, 2018 has been particularly strained by natural disasters. Despite a growing number of events, the financial impact of claims has dropped significantly.
Number of natural disasters per region in 2018
A total of 848 natural disaster events were reported in 2018 compared to 710 in 2017. The year 2018 sustained no less than 408 hurricanes, accounting for 48% of the total natural disaster claims.
848 events
4% North America* 19% 19% South America 7%
7% Europe 14% 43% Africa 13%
14% Asia 43%
Australia and Oceania 4% 13%
Number of deatls per region in 2018
12 774 deaths
2% 6% 1% 3% North America* 6% 9% South America 1% Europe 3% Africa 9% Asia 79% Australia and Oceania 2% 79%
Source : Munich Re * Including Central America and the Caribbean
Atlas Magazine . N° 165 . November 2019 11 FocusFocus
Economic and insured losses reported in 2018
The economic losses sustained in 2018 amount to 178 billion USD versus 330 billion USD a year before. Damages to the expense of insurers amounted to 80 billion USD in 2018 versus 135 billion USD in 2017.
North America and especially the United States were the hardest hit in terms of economic and insured losses. This trend is accounted for by the high rate of insurance penetration in this part of the world.
Economic losses: 178 billion USD
1.8% North America* 47.1% South America 2.4% 38.2% 47.1% Europe 9.4% Africa 1.1%
1.1% Asia 38.2% 2.4% Australia and Oceania 1.8% 9.4%
Insured losses: 80 billion USD
1.3% 23.6% North America* 67.1%
Europe 8%
8% Asia 23.6% 67.1% Australia and Oceania 1.3%
* Including Central America and the Caribbean
Sources : Munich Re
Atlas Magazine . N° 165 . November 2019 12 FocusFocus
Breakdown of economic and insured losses per type of event
Weather-related events were prevalent, accounting for 55.2% of claims.
Economic losses due to tropical hurricanes amount to 57 billion USD, 29 billion USD of which are to the charge of insurers. California's wildfires have also had a tremendous impact, causing economic losses worth 24 billion USD and insured losses of 18 billion USD.
Economic losses
6.9%
24.1% Meteorological 55.2% Hydrological 13.8% 55.2% Climatological 24.1% Geophysical 6.9% 13.8%
Insured losses
2.9%
24% Meteorological 67.2%
Hydrological 5.9%
5.9% Climatological 24% 67.2% Geophysical 2.9%
Source : Munich Re http://www.zep-re.com http://www.zep-re.com
Atlas Magazine . N° 165 . November 2019 13 FocusFocus
Capital supply on a growing trend
Although stabilized over the past two years, and 605 billion USD at the end of the first quarter of 2019 according to AM Best, capital supply, estimated at and 540 billion USD by the end of 2013. 438 billion USD in 2019, has increased by almost 20% Still according to AM Best, the level of traditional between 2013 and 2019. capital has more or less stabilized since 2014, It is noteworthy that the figures provided by AM Best currently estimated at 346 billion USD versus 340 are significantly different from those published by billion USD in 2014. Aon Securities which refer to a capital amounting to
Total reinsurance capacity
In billions USD
500 432 436 438 420 400 400 400 95 368 75 87 92 60 68 48 300
200 345 345 346 320 340 332 341
100
0 2013 2014 2015 2016 2017 2018 E 2019 *
Conventional reinsurance Alternative reinsurance
E: estimation Sources : AM Best and Guy Carpenter
TANZANIA REINSURANCE COMPANY LTD https://www.tan-re.co.tz(TAN-RE) https://www.tan-re.co.tz 8th Floor TAN-RE House, Plot 406 Longido Street, Upanga P.O. Box 1505 Dar es salaam, Tanzania Tel: +255 22 2922341/3 Fax: +255 22 2922344 https://www.tan-re.co.tzMail: [email protected] Website: www.tan-re.co.tz ISO 9001: 2015 Certified GCR: A (National), B (International)
Atlas Magazine . N° 165 . November 2019 14 FocusFocus
Today, markets have adapted well to alternative digestion, however, risks to fade in 2020 due to the capital, which has been growing over the past five persistence of low interest rates that tarnishes the years. This development is accounted for by several attractiveness of other asset classes. reasons: low interest rates, the emergence of new A closer look at the supply of alternative capital forms of capital, and some rapprochement with since 2013 shows that after a solid rise until 2017, the traditional capital. However, while the rise was clear decline in insurance-linked securities type of until 2018, the market has slowed down ever since. (1) products has been sharp since 2018. The heavy As a result, global capital offered in reinsurance in losses suffered in 2017 and 2018 slowed investor 2018 totaled 436 billion dollars compared to the 438 momentum. Second finding: institutional investors billion USD estimated in 2019. According to AM Best, and traditional reinsurers underwriting through third the fall in alternative capital in 2019 results from the parties specialized in alternative capital supply did losses sustained in 2017 and 2018. This phase of not offset this recent withdrawal.
Capacity of the alternative market
In billions USD 100
90
80
70 56 52 60 62 50 49 45 40 41
30 36 34 20 34 21 14 18 20 10 8 555556 0 4
2013 2014 2015 2016 2017 2018 2019E
Direct institutional investors Reinsurance Sponsored Manager * Dedicated ILS Managers
* Including sidecars Source : Guy Carpenter and AM Best
(1) ILS : Insurance Linked securities. In non life, ILS include mainly the Catastrophe bonds, the Embedded Value Securitization, the Longevity Swaps and the Reserve Funding Securitization www.sahamassurance.com/en www.sahamassurance.com/en
Atlas Magazine . N° 165 . November 2019 15 Focus
Evolution of loss experience
Natural disasters have particularly strained reinsurers have continued their recourse to models reinsurers in 2017 and 2018, both years standing that were inconsistent with the underlying risks. The among the most expensive in the history of traditional risk underwriting approach was reinsurers. The use of alternative capital, especially relinquished for an exclusively modeling-based in retrocession, was able in the past to spare approach, which cost reinsurers heavy losses. The traditional reinsurance market high loss experience. combined ratio reached 110.1% in 2017 (with a loss This, however, has impeded adequate adjustment ratio of 76.5%) and then 102.2% in 2018 (with a loss of traditional reinsurance prices by delaying the ratio of 68.2%). The average combined ratio for the impact of the 2017 claims. last five years is 97.5%.
The 2018 loss experience, including the California The series of poor results significantly reduced the fires and Japan's Jebi typhoon, pinpointed the reserve margin designed to soften the results of the inappropriate tariffs in force and poor exposure bad years. management. After the disastrous 2017 year,
Evolution of ratios: 2014-2018
110.1% 102.2% 97.5% 100% 95.3% 89.7% 90.4%
80% 76.5% 68.2% 60.6% 63.5% 60% 56.2% 56.2%
40%
20% 33.5% 34.2% 34.7% 33.6% 34.0% 34.0%
0% 2014 2015 2016 2017 2018 5-year average
Management expenses ratio Loss ratio
Source : AM Best http://www.group-atlas.com/ats/en http://www.group-atlas.com/ats/en
Atlas Magazine . N° 165 . November 2019 16 Focus
Return on equity (ROE)
Strong competition among reinsurers, rising reinsurance. Return on equity has deteriorated claims, volatile financial markets and lower interest sharply since 2013, from 13% back then to 1% in rates have adversely impacted market profitability, 2018. Set at -0.3%, ROE was negative in 2017. hence the growing difficult to release margins in
Return on Equity (ROE)
20
15 13 11.6 9.5 8.3 10
6% 5 1 -0.3 0 2013 2014 2015 2016 2017 2018
-5
ROE 5-year average
Source : AM Best
Atlas Magazine . N° 165 . November 2019 17 Focus
Reinsurers’ results
The analysis of the global reinsurance market including its players rests on the following indicators: premiums, revenues, investments, profit, loss ratio, combined ratio, return on equity,...
Main indicators of the global reinsurance market: 2013-2018
In billions USD 5-year Indicator 2013 2014 2015 2016 2017 2018 average
Non life net written premiums 144.2 140.4 137.5 138.6 152.8 158.6 145.6
Net earned premiums 140 135.7 135.8 135.8 151.4 155.9 143.2
Net investment income 22.6 23 19 20.5 26 16.9 21.1
Total revenues 232.2 222.5 213.2 220.6 244.8 216.8 223.6
Net result 24.7 22.9 18.9 16.3 -0.7 2 11.9
Shareholder’s equity 191.5 205.7 198.4 202.1 203.3 198.8 201.7
Loss ratio 55.9 56.2 56.2 60.6 76.5 68.2 63.5
Management expenses ratio 31.9 33.5 34.2 34.7 33.6 34 34
Combined ratio % 87.9 89.7 90.4 95.2 110.1 102.3 97.6
Return on Equity (ROE ) in % 13 11.6 9.5 8.3 -0.3 1 6
Return on Revenue (ROR) in % 10.7 10.3 8.9 7.4 -0.3 0.9 5.4
Source : AM Best
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Atlas Magazine . N° 165 . November 2019 18 Focus
Results of the four major European reinsurers
Return On Equity (ROE): In terms of ROE, the the 2018 net result amounted to 2 billion USD, 12 combined average for the last five years with times lower than those reaped in 2013 and set at reference to the four major European reinsurers, 24.7 billion USD. It is noteworthy that for 2017 and Munich Re, Swiss Re, Hannover Re and Scor (8.2%) is 2018, the net income of the four majors was higher than that of the whole market. significantly higher than that generated by the overall market. Non-life net written premiums: The combined average premium of the top four European Loss ratio and combined ratio: The average loss reinsurers over the past five years amounts to 61.8 ratio of the four major European reinsurers is 2.3 billion USD, down over the comparison period, points higher than that of the market (65.8% versus going from 66.1 billion USD in 2013 down to 63.4 63.5%). billion USD in 2018. This indicator has been on the The combined ratio of the two sets is more or less rise at the global level. The global reinsurance the same. 97.8% for majors and 97.6% for the premium has risen from 144.2 billion USD in 2013 to market. 156.6 billion USD in 2018. In fact, the portfolio of large reinsurers is more Net result: This indicator is declining considerably for the four major reinsurers, going from 11.1 billion USD distressed but better managed than that of the in 2013 to 4.6 billion USD in 2018, i.e. around 2.5 times entire market. less in five years. At the level of the overall market,
Main indicators of the top 4 European reinsurers : 2013-2018
In billions USD 5-year Indicator 2013 2014 2015 2016 2017 2018 average
Non life net written premiums 66.1 61.4 59.3 59.8 64.8 63.4 61.8
Net earned premiums 63.6 60.4 58.4 58.8 65.3 63.2 61.2
Net investment income 16.6 16.3 14.2 14.3 18.9 10.8 14.9
Total revenues 148.3 136.1 129.9 134.7 146.9 115.3 132.6
Net result 11.1 9.3 10 8.2 2.4 4.6 6.9
Shareholder’s equity 83.9 89.9 84 86.5 85.6 74.8 84.1
Loss ratio 60.2 61.7 59.9 63.4 76.7 67.2 65.8
Management expenses ratio 29.1 30.7 31.9 32.8 32.2 32.4 32
Combined ratio % 89.3 92.4 91.8 96.3 108.9 99.7 97.8
Return on Equity (ROE ) in % 13.1 11 11.5 9.7 2.7 5.8 8.2
Return on Revenue (ROR) in % 7.5 6.8 7.7 6.1 1.6 4 5.2
Source : AM Best
Atlas Magazine . N° 165 . November 2019 19 Focus
Lloyd's results
As far as Lloyd's is concerned, the premium volume remained well below the 65.8% reported by the four has been stable since 2013 but the net result had major European groups and the 63.4% of the significantly shrunk in 2017 and 2018. After several Bermudan market. good years, losses have been particularly high in Due to rising loss experience of natural disasters, the the last two years, -2.7 billion USD in 2017 and -1.3 ROE of the London market fell sharply to -7.3% in billion USD in 2018. This net income amounted to 5.3 2017 and -3.7% in 2018 while in 2013 it was set at billion USD in 2013. 16.2%. The loss ratio has particularly deteriorated during Within the average five-year period, the ROE of the the reporting period from 48.6% in 2013 down to London market is twice as low as that of the four 65.4% in 2018. However, with an average of 59.2% major reinsurers (4.1% versus 8.2%). over the last five years, Lloyd’s loss ratio has
Main indicators of the Lloyd’s : 2013-2018
In billions USD 5-year Indicator 2013 2014 2015 2016 2017 2018 average
Non life net written premiums 33.4 31.1 31.2 28.4 33.6 32.5 31.3
Net earned premiums 22.5 30.4 30.5 27.9 33.1 31.9 30.7
Net investment income 1.4 1.6 0.6 1.7 1.9 1.3 1.4
Total revenues 33.5 32 31.1 30 35.5 32.7 32.3
Net result 5.3 4.9 3.1 2.6 -2.7 -1.3 1.3
Shareholder’s equity 33.6 35.1 35.9 34.1 36.1 34.8 35.2
Loss ratio 48.6 49 49.9 57.3 74.5 65.4 59.2
Management expenses ratio 38.2 39.1 40.1 40.6 39.5 39.2 39.7
Combined ratio % 86.8 88.1 90 97.9 114 104.6 98.9
Return on Equity (ROE ) in % 16.2 14.7 8.9 8.1 -7.3 -3.7 4.1
Return on Revenue (ROR) in % 15.8 15.3 10.1 8.6 -7.6 3.9 4.5
Source : AM Best
Atlas Magazine . N° 165 . November 2019 20 Focus
Results of American and Bermudan reinsurers
American and Bermudan reinsurers have an Eventually, American and Bermudian reinsurers average ROE of 4.7% over five years, slightly more posted strong growth in shareholder's equity (+15 than Lloyd's but less than the top four European billion USD) while Lloyd's’ remained stable. As for the reinsurers. The average combined ratio stands at four main reinsurers, it went down at (-11 billion 96.4% compared to 97.6% for the overall market, USD). 97.8% for the four major reinsurers and 98.9% for Lloyd's.
Main indicators of the American and Bermudan markets : 2013-2018
In billions USD 5-year Indicator 2013 2014 2015 2016 2017 2018 average
Non life net written premiums 44.8 47.8 47 50.4 54.4 62.7 52.5
Net earned premiums 43.6 46.2 46.7 49.1 53 60.7 51.2
Net investment income 4.7 5 4.2 4.6 5.2 4.8 4.8
Total revenues 50.4 54.4 52.2 55.8 62.3 68.9 58.7
Net result 8.4 8.7 5.7 5.5 -0.4 -1.4 3.6
Shareholder’s equity 74 80.8 78.5 81.5 81.7 89.1 82.3
Loss ratio 55.3 53.8 55.7 59 77.5 70.8 63.4
Management expenses ratio 31.3 33.6 33.3 33.5 31.7 33 33
Combined ratio % 86.6 87.4 88.9 92.5 109.2 103.8 96.4
Return on Equity (ROE ) in % 11.4 10.9 7.5 6.8 -0.5 -1.5 4.7
Return on Revenue (ROR) in % 16.6 16 11 9.8 -0.6 -2 6.8
Source : AM Best
Atlas Magazine . N° 165 . November 2019 21 Focus
Mergers and acquisitions poised to linger on but less vigorously so
Mergers and acquisitions are an important ► They face greater difficulties in decreasing low theme in reinsurance. Due to poor results and costs, interest rates. many reinsurers are under pressure. In addition, the Small reinsurers with a geographically limited possibilities of organic growth being limited, these portfolio may be interested in merging with a reinsurers have difficulty in generating sufficient reinsurer of the same profile. Other reinsurers may margins to finance their activity. Excess in available also target these players. The acquisition of capital can only confirm the idea of concentration Hannover Insurance International Holding by China in the sector. Re announced in the summer of 2018 was primarily Small reinsurers are under pressure from leading aimed at diversifying the portfolio of the Chinese players and more generally from their environment : reinsurer geographically. For the same reason,
► They have a limited product supplies, Renaissance Re took control of Tokio Millenium in October 2018. ► They suffer from a penalizing cost structure, ► Some insurers of regional or international scope Despite the arguments developed above, mergers prefer to surround themselves with a limited and acquisitions in the reinsurance sector have number of renowned reinsurers, fallen sharply since 2017 while rating agencies
► Surplus capital keeps prices under pressure, estimate that this trend should last until 2020.
Evolution of the mergers-acquisitions value : 2009-2019
140 In billions USD 120
100
80
60
40
20
0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Source : SNL Data http://www.continental-re.com http://www.continental-re.com
Atlas Magazine . N° 165 . November 2019 22 Focus
Main mergers-acquisitions transactions : 2016-2019
In billions USD Transaction Transaction Transaction Acquirer Country Target company Country announced finalised amount Liverpool Victoria May 2019 Underway Allianz UK UK UK 0.73 General Ins. Group American Family Ins. April 2019 Underway USA IDS Property Casualty Co. USA 1.05 Mutual Holdings Co. Dec. 2018 Underway Earning Star Hong Kong FTLife Insurance Co Hong Kong 2.75
Oct. 2018 March 2019 RenaissanceRe Bermuda Tokio Millennium Re (TMR) Japan 1.47 Australian & New Zealand Life Resolutions Oct. 2018 Underway Australia wealth protection and Australia 2.34 Australia mature businesses Maiden Reinsurance August 2018 Dec. 2018 Enstar Holdings Bermuda USA 0.32 North America August 2018 April 2019 China Re China Chaucer Holdings UK 0.95 Apollo Global August 2018 Feb. 2019 USA Aspen Ins. Holdings Bermuda 2.6 Management Star Health and Allied August 2018 Underway A group of investors - India 0.92 Ins Co. August 2018 Dec. 2018 A group of investors - Esure Group UK 1.51
August 2018 Underway Cinven UK AXA Life Europe DAC Ireland 1.08 Equitable Life June 2018 Underway Reliance Life UK UK 2.41 Assurance Society March 2018 Sep. 2018 AXA France XL Group Ireland 15.35
Feb. 2018 May 2018 Enstar Group Limited Bermuda KaylaRe Bermuda 0.40
Jan. 2018 July 2018 AIG USA Validus Bermuda 5.56
July 2017 Nov. 2017 Markel Corporation USA State National USA 0.92
July 2017 Oct. 2017 Axis Capital Hdg Bermuda Novae Group UK 0.6
Dec. 2016 July 2017 Fairfax Financial Canada Allied World Assurance Switzerland 4.9
Dec. 2016 May 2017 Liberty Mutaul Group USA Ironshore USA 2.94
Nov. 2016 April 2017 Axis Capital Bermuda Aviabel Cie . Belge Belgium NA
Nov. 2016 Feb. 2017 Argo Group US Bermuda Arial Re Bermuda 0.24
Oct. 2016 April 2017 Partner Re Bermuda Aurigen Capital Bermuda 0.29
Oct. 2016 March 2017 Sompo Holdings Japan Endurance Specialty Bermuda 6.3
Sept. 2016 Dec. 2016 Canada Pension Plan Canada Ascot Underwriting UK 1.1
August 2016 Jan. 2017 Arch Capital Group Bermuda United Guaranty USA 3.4
NA : Not available Sources: Global Reinsurance Highlights 2019
Atlas Magazine . N° 165 . November 2019 23 News
AFRICA Click here for more news on Africa
Africa Democratic Republic of Congo
Journalism Awards 2020: Pan-African SONAS training workshop Journalist of the Year The Société Nationale d’Assurances (SONAS) The registrations for the next edition of the organized from 14 to 19 October 2019 a seminar to «Journalism Awards» are valid from September 2 strengthen the technical capacity of its executives until November 30, 2019. and agents. Established in 2015 by the Nigerian reinsurer The workshop was chaired by Gilbert Badibanga, Continental Re, this competition aims to motivate the company's deputy general manager, in the African insurance and reinsurance journalists. presence of the Chairman of the Board The competition only targets anglophone and Jean-Robert Kumabwenyi. The training focused on francophone African journalists. non-life insurance and sales techniques. Click to read more : www.atlas-mag.net/en/article/ The seminar's objective was to consolidate the skills journalism-awards-2020-pan-african-journalist-of-the- of SONAS employees in order to meet the year international standards. Three discussion panels were set up during the five-day training: motor Côte d’Ivoire insurance, professional multi-risk insurance and marine insurance. Cooperation agreement between Sanlam and the INP-HB Institute Gabon
National Polytechnic Institute Houphouët-Boigny in Assinco: non-life market leader in Yamoussoukro (INP-HB) and the pan-African insurance group Sanlam signed a partnership 2018 agreement on 6 October 2019. This agreement aims Despite a difficult economic situation, the to improve the professional integration of the Gabonese insurance company Assinco achieved a Institute's young graduates. Several other actions 12% turnover increase in 2018. The latter rose from are planned, including the organisation of 17.56 billion FCFA (32.135 million USD) in 2017 to internships and the provision of educational 19.71 billion FCFA (34.295 million USD) in 2018. equipment to students. The market share of the new insurance leader has The professional internships will be intended mainly also increased to 27% in 2018 compared to 23% in for students from three schools: the International 2017. Consequently, Assinco finds its way on the top Data Science Institute (IDSI), the higher school of of the non-life market after holding the second industry (ESI) and the higher school of business and position a year earlier. business administration (ESCAE). The incurred losses remained stable at 11.196 billion For this project, Sanlam is donating 50 million FCFA FCFA (19.48 million USD) compared to 10.967 billion (87 000 USD) to IDSI. FCFA (20.1 million USD) in 2017. The loss ratio is of 57.27% and the combined ratio is of 87.84%. The SUNU Assurance to launch a new only indicator in decline is the net result which sets product at 114 million FCFA (198 360 USD) in 2018 after In partnership with Tourex Corporates, a provider of recording 1 346 million FCFA (2.4 million USD) in 2017. technology solutions, SUNU Assurance Côte d'Ivoire has launched a new motor offering called "Connected Auto". The product designed for individuals and businesses offers policyholders new features such as geolocation, security and optimal use of their vehicles. "Connected Auto" available in mobile application and via a web portal, is a hotline open 24/7 through Titan, a regional partner of Tourex Corporates. A "Connected Auto" profile is offered to all SUNU customers when purchasing a motor insurance policy. The installation of the equipment is offered for the first 12 months for all types of contracts (companies or individuals).
Atlas Magazine . N° 165 . November 2019 24 News
AFRICA Click here for more news on Africa
40% of vehicles in Gabon are According to both organizations, it is very difficult uninsured for insurance companies to raise their capital in view of Nigeria's current economic environment. According to FEGASA (Gabonese Federation of This NAICOM's requirement may therefore penalize Insurance Companies), out of the 250 000 vehicles the market, according to them. travelling in Gabon, only 150 000 are insured. In the Of the 46 insurers and reinsurers subject to end, 100 000 road users are in violation of the laws. recapitalization, 26 insurers have already This situation results in a significant shortfall for regularized their situation while 17 others have to insurance companies which lose more than 10 make amendments to their original draft. Only 3 billion FCFA (17 million USD) per year. Another loser is insurers have not submitted a recapitalization plan. the Gabonese State which reports a loss of earnings Nigeria's insurance penetration rate was of 0.25% in of one billion FCFA (1.7 million USD) in taxes. 2017. Kenya LASACO Assurance to increase its Insurance fraud on the decline in capital Kenya LASACO Assurance has increased its capital by 10 Kenya's Insurance Regulatory Authority (IRA) billion NGN (27.6 million) to reach 18 billion NGN reported 91 cases of fraud in 2018, decreasing by (49.4 million USD). This increase will result in the 60.15% in one year. The total cost of these offences issuance of new shares. The 39th Annual General Meeting of LASACO is estimated at 310.4 million KES (2.9 million USD). Assurance, held in Lagos on 8 October 2019, took Motor insurance accounted for 22% of the cases such a decision in order to comply with the detected by IRA. legislation. The National Insurance Commission Also, 19 insurance frauds were committed by insurance agents during the same year. (NAICOM) has required Nigerian composite insurers to have a minimum capital of 18 billion NGN (49.4 million USD). Nigeria
Increase in the minimum share Saham Unitrust Nigeria to launch an capital of Nigeria's insurance online travel insurance In partnership with Swan International Assistance, companies Saham Unitrust Insurance Nigeria has launched an Two insurer associations, Progressive Shareholders online travel insurance. Association of Nigeria and Constance Shareholders This policy includes travel cancellation, loss of Association of Nigeria, have asked the National luggage or passport, medical care and repatriation Insurance Commission (NAICOM) to extend the in the event of death. deadline for raising the minimum share capital to
June 30, 2020.
Atlas Magazine . N° 165 . November 2019 25 News
ASIA Click here for more news on Asia
China The advertisements shall respect the transparency of the terms offered by the insurers:
China opens borders to foreign banks ► covers in conformity with the legislation, and insurance companies ► clear exclusions, The Chinese Council of State Affairs announces on ► calculation of the detailed premium, October 15, 2019 an upcoming facilitation of the ► reasonable contract costs,... regulations in consistence with the access of Any particular reference to the insurer's ranking on foreigners to local banks and insurance companies. the market (turnover achieved, claims settlement These measures will be published in the upcoming rate...) is prohibited. In fact, some of these days. recommendations were already mentioned in the For now, foreign insurance companies wishing to IRDA's Circular dated August 20, 2015. settle in China must fulfil certain conditions, including: Road safety, 133 users of two-wheelers ► A minimum of 30 years of experience in the field, die every day in India ► A prior presence on the Chinese territory, of a Road accidents claim the lives of 133 two-wheeler's minimum duration of two years, in the form of a users in India every day. According to 2017 statistics, representative office. the number of deaths amounts to 48 746 for an Appreciated by international financial institutions, entire year. this initiative accelerates the liberalization of the The non-use of a helmet is the major cause of death Chinese financial market while it strengthens its for these drivers. Failure to comply with this security vitality. measure accounts for 73% of deaths, that is 35 975 Japan people per year. Nearly half of the victims are reported in four states: Tamil Nadu, Uttar Pradesh, Typhoons Hagibis and Faxai: Impact on Maharashtra and Madhya Pradesh. insurance and reinsurance markets In India, 33% of road accidents are due to the two-wheelers. As of September 1, 2019, the Highway The Typhoon Hagibis toll which hit Japan on the 12th th Code has introduced tougher penalties for violators. and 13 of October, 2019, is depicted as catastrophic. For AIR Worldwide, an American risk Cambodia modelling and analysis company, the insured damages could range from 865 billion JPY (8 billion Signing of a memorandum of USD) to 1 730 billion JPY (16 billion USD). understanding on motor insurance For the record, Typhoon Faxai which struck Japan in The Insurance Association of Cambodia (IAC) has September, 2019 has costed 7 billion USD in insured finalized an agreement with insurers, the objective damages. of which is to provide better coverage of motor The most significant part of the damage will be insurance risks. borne by the reinsurers. The results of the three main The memorandum of understanding, which will Japanese insurers shall slightly be impacted. These come into force in January 2020, aims to facilitate two successive natural disasters will hinder the 2020 the damage payment to the insured vehicles and reinsurance treaties' renewal. make expert operations more accurate. India The ACA's claims committee will assist insurance companies in the handling of claims. A climate of Insurance advertising: stricter mistrust towards insurers is widespread among road regulation users. In 2018, of the 798 truck accidents in 2018, The Indian Regulatory Authority (IRDAI) has updated only 24% were covered by insurance. the restrictions on the advertising of insurance policies. The objective is to protect the consumers from any aggressive practices by the insurers. The latter are required to meet certain standards when advertising their insurance products. The climate of trust between insurers and policyholders must be preserved.
Atlas Magazine . N° 165 . November 2019 26 News
MAGHREB Click here for more news on Maghreb
Algeria SCR: Results 2018 The Société Centrale de Réassurance (SCR) ended Caarama on the rise the 2018 year with a net result of 300.13 million MAD Ammar Meslouh, chairman of the Caarama (31.38 million USD) down by 39% compared to the insurance company, inaugurated a new subsidiary 491.96 million MAD (49.79 million USD) of 2017. The in Setif, one of the country’s major cities. company's turnover was almost stable slightly rising The latter further expands the company’s network from 2 013.77 million MAD (203.84 million USD) in which increased from 105 to 281 agencies in 2018. 2017 to 2 023.85 million MAD (211.62 million USD) 12 In the previous year, Caarama recorded a turnover months later. of 1.7 billion DZD (14.2 million USD). The shareholder's equity amounted to 2 447.23 million MAD (255.89 million USD), decreasing by New tax on motor insurance contracts 6.57% in comparison with the previous year. The in 2020 share capital remained unchanged at 1 500 million In its 2020 draft budget law, the Algerian MAD (156.84 million USD). government plans to introduce an environmental tax. The tax that will be levied on all motor Tunisia insurance policies amounts to 1 500 DZD (12.5 USD) At-Takafulia: Loss-making results for passenger vehicles and 3 000 DZD (25 USD) for 2018 the other vehicles. At-Takafulia ended the year 2018 with a net loss of Many countries have already introduced such a tax 376 599 TND (125 120 USD). This is the third year in a which meets the «polluter pays " principle. row that the Tunisian insurer is reporting losses. The insurance company's share capital is of 10
Morocco million TND (3.32 million USD). Bancassurance in Morocco: results Revision of motor insurance pricing in 2018 According to the Insurance and Social Welfare Tunisia Authority (Acaps), bancassurance reported a On the sidelines of the 24th African Reinsurance turnover of 11.48 billion MAD in 2018 (1.2 billion USD), Forum held from 29 September to 1 October 2019 in that is an increase of 18.4% compared to 2017. Tunis, Kamel Chibani, executive director of the Life and capitalization insurance amounted to 10.8 Tunisian Federation of Insurance Companies (FTUSA) recalled that a new insurance code is being billion MAD (1.13 billion USD) and accounted for drafted. 94% of the gross premiums. Assistance, credit, health The next text will introduce changes especially in and personal injury constituted the remaining 6%. the motor class of business: Four banks, namely Attijariwafa Bank, BMCE Bank, ► revision of tariffs, Banque populaire and Crédit du Maroc collected ► customization of policies: driver experience, 91% of the premiums reported by bancassurance. frequency of the vehicle's use, number of Wafa Assurance: the 2020-2024 drivers,... strategic plan to be finalized shortly ► simplifying contracts, Wafa Assurance has entrusted the preparation of its ► digitalization of claims management through the new 2020-2024 strategic plan to the French firm creation of an electronic exchange platform. Corporate Value Associates. The study is expected to be completed by the end of November 2019. As a reminder, the Moroccan insurance leader ended the year 2018 with a 25.8% drop in its net result at 608 million MAD (64 million USD). However, the turnover grew by 4% at 8.371 billion MAD (875.294 million USD).
http://www.tunisre.com.tn http://www.tunisre.com.tn
Atlas Magazine . N° 165 . November 2019 27 News
MIDDLE EAST Click here for more news on the Middle East
Egypt ► 118 million USD for life insurance, +7% compared to 2017, Eight Egyptian insurers witness ► 56 million USD for non-life insurance, +32% compared to 2017. capital increase In compliance with the new law on minimum This performance is accounted for by the 3% capital, eight Egyptian insurance companies — Misr decline in the paid claims and the 1% increase in Takaful, Suez Canal Life, Suez Canal P&C, written premiums at 1.63 billion USD. Mohandes Insurance, Mohandes Life, Delta The total assets reported on the balance sheet Insurance, Royal Insurance and Egyptian Takaful — reached 4.9 billion USD at 31 December 2018, that is an increase of 2% in one year. have increased their capital. Click to read more: www.atlas-mag.net/en/article/ Oman eight-egyptian-insurers-witness-capital-increase Creating a health insurance database Rating of Egyptian insurance Following the introduction of a mandatory health companies insurance scheme for the private sector employees, Under pressure from the supervisory authorities, expatriates and foreign visitors, the supervisory Egyptian insurers are establishing risk management authority is setting up a health insurance database. committees to meet the credit rating requirements The database contains information on private of international agencies such as Standard and sector companies, employees, private health Poor's, AM Best, Moody's, Fitch Rating,... facilities and specialized clinics. It allows The objective is to comply with the new regulatory geographical locations in all regions of the country and prudential requirements imposed by the new and provides data on insurance companies. international standards. This platform is an electronic linkage system between insurance companies, health organizations, Jordan supervisory institutions and claims management centres. Jordanian insurance market: increasing profit by 40% in the first Saudi Arabia half of 2019 Regulation of online brokerage The Jordanian insurance market recorded a profit worth 13 million JOD (18.3 million USD) in the first half activity in Saudi Arabia of 2019, up by 40% compared to the 9.3 million JOD The Saudi Arabian Monetary Authority (SAMA) has (13 million USD) recorded during the same period of submitted a bill for the regulation of online 2018. insurance brokerage. Of the kingdom's 23 insurance companies, 22 The new regulation has to specify the requirements submitted their financial results for the first six months for granting an online insurance broking license and of 2019. Among them, 20 entities posted profits, regulate the relationship between the online while two others were loss-making. brokers and the insurance companies. Intermediate financial results published by the The new text reflects SAMA's willingness to Jordan Insurance Federation also showed a 2.2% modernize the financial sector and develop the decrease in written premiums at 316.3 million JOD new technologies in insurance. (446 million USD) against 323.9 JOD (456.8 million USD) one year earlier.
Lebanon http:// Lebanese insurance market: rising www.arabre.com profit by 14% in 2018 http:// According to the annual report of the Insurance www.arabre.com Control Commission (ICC) the net profit of the Lebanese insurance companies amounted to 174.1 http:// million USD in 2018, a growth of 14% compared to www.arabre.com 2017. The net profit is split into: http:// www.arabre.com
Atlas Magazine . N° 165 . November 2019 28 News
MIDDLE EAST Click here for more news on the Middle East
Strategic committee to develop health objective is to make insurance contracts insurance in Saudi Arabia transparent and to standardize the practices of selling, takeover and reimbursing policies. The Strategic Committee for Health Insurance, This modification could improve the penetration together with insurance companies and health rate of insurance in the Emirates. For the record, the care providers, is working to develop governance life market (traditional and takaful) totalizes 27.4% of plans. premiums, that is 3.3 billion USD in 2018.
This action plan shall focus on: ► improving the procedures of claims settlement, Business agreement between IGI and ► developing the electronic transaction platform, Tiberius Acquisition Corp ► the classification and medical coding, The American company Tiberius Acquisition Corp. ► a better presentation of insurance policies. becomes a shareholder of the Emirati reinsurer In Saudi Arabia, health insurance reported more International General Insurance (IGI). than 52% of the total annual premiums, that is 18 Under the terms of the agreement, the two partners billion SAR (4.8 billion USD). will create a new structure called International General Insurance Holdings Limited, domiciled in United Arab Emirates Bermuda. Click to read more: www.atlas-mag.net/en/article/ New regulation of life insurance and business-agreement-between-igi-and-tiberius- family takaful acquisition-corp The supervisory authorities have published a new regulation of life insurance and family takaful, consistent with international standards. The
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Atlas Magazine . N° 165 . November 2019 29 News
WORLD Click here for more World news
France Turkey
AXA: a geographic refocusing strategy Creation of Turk Re, a State-owned AXA has ceded AXA Bank Belgium to Brussels reinsurer in Turkey banking group Crelan. The transaction amounted A new State-owned reinsurer, Turk Re, has been to 620 million EUR (689 million USD). established in Turkey. The newly created company With more than 800 000 customers and 27 billion EUR will be entrusted with the management of the (30 billion USD) in assets, AXA Bank Belgium is the natural disaster risk pool and will ensure greater country's sixth largest bank in terms of assets in 2018. premiums' retention. The purchaser, Crelan, with 920 000 customers, ranks The Ministry of Treasury and Finance owns 100% of seventh with assets amounting to 20.4 billion EUR Turk Re's shares. Selva Eren has been appointed (22.7 billion USD). general manager of the reinsurer.
This cession is part of the French insurance leader's strategy of geographical refocusing. The group is United States henceforth prioritizing markets considered as strategic such as: AIG settles in Lloyd’s ► France, Germany or Switzerland in Europe, The American International Group (AIG), targets ► Brazil and Mexico in Latin America, wealthy American customers. The operation ► China, Indonesia, Thailand and the Philippines in planned for 2020, emanated from a newly created Asia. Lloyd’s “Syndicate 2019”. AXA has recently withdrawn from Ukraine and The 2019 Syndicate shall provide real estate, luxury Azerbaijan. The insurer is looking for an acquirer for cars and Art work coverage. It also plans to his activities in Poland, the Czech Republic and develop cyber insurance products which is Slovakia. extremely sought by the wealthy. The administration of the new entity will be Germany entrusted to the management agency "Talbot Underwriting Limited". AIG expects to make 1 billion Munich Re to exceed its 2019 targets USD of annual premiums. This policy is in line with From July to September 2019, Munich Re posted a AIG’s aim to diversify its portfolio by targeting the well-to-do. net quarterly profit of 850 million EUR (930 million USD), up by 75% compared to the 483 million EUR SCOR named "North America (560 million USD) reported at the same period of last year. This performance exceeds the 2019 Reinsurer of the Year" expectations. SCOR Group was named "North America Reinsurer Despite natural catastrophe claims, the profit of the Year" at the "North America Awards" achieved by the end of the third quarter of 2019 is ceremony, held on September 26, 2019 in New York accounted for by the good performance of all by Reactions magazine. operations and by the currency gains made during This distinction rewards the remarkable growth of the period under review. SCOR Group's life and P&C business in the United The German reinsurer expects its annual net profit States. target to exceed 2.5 billion EUR (2.79 billion USD) Being a leader of life reinsurance in the United against 2.31 billion EUR (2.64 billion USD) in 2018 and States for six years, SCOR Global Life is endowed only 375 million EUR (449 million USD) in 2017. with an important portfolio in the region with 24 million policies, 15 million policyholders and 1.9 Slovenia trillion USD of face amount.
AM Best affirms the rating of Sava Re AM Best affirms Sava Re d.d’s A (Excellent) financial http://www.atlas-mag.net/ad_odysseyre?utm_source=atm&utm_medium=pdf&utm_campaign=odysseyre2015 strength and a long-term credit rating. The outlook http://www.atlas-mag.net/ad_odysseyre?utm_source=atm&utm_medium=pdf&utm_campaign=odysseyre2015 http://www.atlas-mag.net/ad_odysseyre?utm_source=atm&utm_medium=pdf&utm_campaign=odysseyre2015 http://www.atlas-mag.net/ad_odysseyre?utm_source=atm&utm_medium=pdf&utm_campaign=odysseyre2015 for both ratings is stable. The rating reflects the http://www.atlas-mag.net/ad_odysseyre?utm_source=atm&utm_medium=pdf&utm_campaign=odysseyre2015 http://www.atlas-mag.net/ad_odysseyre?utm_source=atm&utm_medium=pdf&utm_campaign=odysseyre2015 financial strength of Sava Re’s balance sheet and http://www.atlas-mag.net/ad_odysseyre?utm_source=atm&utm_medium=pdf&utm_campaign=odysseyre2015 http://www.atlas-mag.net/ad_odysseyre?utm_source=atm&utm_medium=pdf&utm_campaign=odysseyre2015 its effective operating performances. http://www.atlas-mag.net/ad_odysseyre?utm_source=atm&utm_medium=pdf&utm_campaign=odysseyre2015 http://www.atlas-mag.net/ad_odysseyre?utm_source=atm&utm_medium=pdf&utm_campaign=odysseyre2015 http://www.atlas-mag.net/ad_odysseyre?utm_source=atm&utm_medium=pdf&utm_campaign=odysseyre2015 AM Best also rates the reinsurer’s neutral business http://www.atlas-mag.net/ad_odysseyre?utm_source=atm&utm_medium=pdf&utm_campaign=odysseyre2015 http://www.atlas-mag.net/ad_odysseyre?utm_source=atm&utm_medium=pdf&utm_campaign=odysseyre2015 profile and its risk management policy. http://www.atlas-mag.net/ad_odysseyre?utm_source=atm&utm_medium=pdf&utm_campaign=odysseyre2015 http://www.atlas-mag.net/ad_odysseyre?utm_source=atm&utm_medium=pdf&utm_campaign=odysseyre2015 http://www.atlas-mag.net/ad_odysseyre?utm_source=atm&utm_medium=pdf&utm_campaign=odysseyre2015 http://www.atlas-mag.net/ad_odysseyre?utm_source=atm&utm_medium=pdf&utm_campaign=odysseyre2015 http://www.atlas-mag.net/ad_odysseyre?utm_source=atm&utm_medium=pdf&utm_campaign=odysseyre2015 http://www.atlas-mag.net/ad_odysseyre?utm_source=atm&utm_medium=pdf&utm_campaign=odysseyre2015 http://www.atlas-mag.net/ad_odysseyre?utm_source=atm&utm_medium=pdf&utm_campaign=odysseyre2015 http://www.atlas-mag.net/ad_odysseyre?utm_source=atm&utm_medium=pdf&utm_campaign=odysseyre2015 http://www.atlas-mag.net/ad_odysseyre?utm_source=atm&utm_medium=pdf&utm_campaign=odysseyre2015 http://www.atlas-mag.net/ad_odysseyre?utm_source=atm&utm_medium=pdf&utm_campaign=odysseyre2015
Atlas Magazine . N° 165 . November 2019 30 Statistics
Mauritius 2018
Tunover 2017-2018 per non life insurance company
2018 turnover 2017 turnover 2017-2018 2018 market evolution (2) shares In MUR (1) In USD In MUR (1) In USD
SWAN 2 881 757 000 81 697 811 2 652 735 000 76 451 823 8.63% 31.54%
Mauritius Union Assurance 2 252 827 000 63 867 645 2 192 673 000 63 192 836 2.74% 24.66%
Mauritian Eagle Insurance 1 148 201 000 32 551 498 1 184 417 000 34 134 898 -3.06% 12.57%
State Insurance Company 789 020 000 22 368 717 757 040 000 21 817 893 4.22% 8.64% of Mauritius (SICOM)
Phoenix Insurance 418 278 000 11 858 181 389 016 000 11 211 441 7.52% 4.58%
The New India Assurance 411 765 000 11 673 538 359 010 000 10 346 668 14.69% 4.51%
Jubilee Insurance 354 055 000 10 037 459 340 592 000 9 815 861 3.95% 3.88%
Lamco International Ins. 242 892 000 6 885 988 237 407 000 6 842 070 2.31% 2.66%
GFA Insurance 188 665 000 5 348 653 192 588 000 5 550 386 -2.04% 2.07%
SWAN SPECIALITY RISK 143 179 000 4 059 125 129 652 000 3 736 571 10.43% 1.57%
Sun Insurance 110 225 000 3 124 879 137 053 000 3 949 867 -19.57% 1.21%
Quantum Insurance 82 776 000 2 346 700 70 143 000 2 021 521 18.01% 0.91% Mauritius Indian Ocean General 58 899 000 1 669 787 59 881 000 1 725 770 -1,64% 0.64% Assurance (IOGA)
Credit Guarantee Ins-CGI 52 929 000 1 500 537 44 133 000 1 271 913 19.93% 0.58%
Total 9 135 470 000 258 990 575 8 746 339 000 252 069 490 4.45% 100%
(1) Mauritian rupee (2) Variation in local currency Exchange rate as at 31/12/2018 : 1 MUR = 0.02835 USD ; as at 31/12/2017 : 1 MUR = 0.02882 USD
Atlas Magazine . N° 165 . November 2019 31 Statistics
Turnover 2017-2018 per life insurance company
2018 tunover 2017 turnover 2017-2018 2018 market evolution (2) shares In MUR (1) In USD In MUR (1) In USD
SICOM Life 6 384 253 000 180 993 573 4 746 443 000 136 792 487 34.51% 50.13%
SWAN Life 4 394 991 000 124 597 995 4 026 741 000 116 050 676 9.15% 34.51%
La Prudence Mauricienne 1 034 009 000 29 314 155 876 773 000 25 268 598 17.93% 8.12%
Life Insurance Corporation 420 125 000 11 910 544 396 458 000 11 425 920 5.97% 3.30%
Island Life Assurance 370 124 000 10 493 015 246 660 000 7 108 741 50.05% 2.91%
Metropolitan Insurance 119 498 000 3 387 768 120 481 000 3 472 262 -0.82% 0.94% Mauritius
Phoenix Insurance 7 849 000 222 519 8 902 000 256 556 -11.83% 0.06%
Lamco International 3 187 000 90 351 3 672 000 105 827 -13.21% 0.03% Insurance
Indian Ocean General 1 944 000 55 112 2 376 000 68 476 -18.18% 0.02% Assurance -IOGA
Total 12 735 981 000 361 065 061 10 428 507 000 300 549 572 22.13% 100%
(1) Mauritian rupee (2) Variation in local currency Exchange rate as at 31/12/2018 : 1 MUR = 0.02835 USD ; as at 31/12/2017 : 1 MUR = 0.02882 USD
Atlas Magazine . N° 165 . November 2019 32 Statistics
Turnover 2017-2018 per class of business
2018 turnover 2017 turnover 2017-2018 2018 market evolution (2) shares In MUR (1) In USD In MUR (1) In USD
Motor 3 449 139 000 97 783 091 3 316 054 000 95 568 676 4.01% 15.77%
Accident and health 2 457 314 000 69 664 852 2 315 073 000 66 720 404 6.14% 11.24%
Property damage 1 347 293 000 38 195 757 1 291 072 000 37 208 695 4.35% 6.16%
Third party liability 545 715 000 15 471 020 716 842 000 20 659 386 -23.87% 2.50%
Miscellaneous acci- 484 911 000 13 747 227 420 748 000 12 125 957 15.25% 2.22% dent
Marine 458 933 000 13 010 751 377 572 000 10 881 625 21.55% 2.10%
Engineering 325 221 000 9 220 015 257 625 000 7 424 753 26.24% 1.49%
Credit-bond 66 943 000 189 775 51 353 000 1 479 993 30.36% 0.31%
Total non life 9 135 470 000 258 990 575 8 746 339 000 252 069 490 4.45% 41.77%
Life 12 735 981 000 361 065 061 10 428 507 000 300 549 572 22.13% 58.23%
Grand total 21 871 451 000 620 055 636 19 174 846 000 552 619 062 14.06% 100%
(1) Mauritian rupee (2) Variation in local currency Exchange rate as at 31/12/2018 : 1 MUR = 0.02835 USD ; as at 31/12/2017 : 1 MUR = 0.02882 USD
Source: Financial Services Commission (FSC) Mauritius
Atlas Magazine . N° 165 . November 2019 33 Agenda
Egypt India
2nd Sharm Rendez-vous India Rendezvous 2020 From 20 to 22 January 2020, Mumbai, India From 11 to 13 November 2019, Sharm El Sheikh, Tel: +65 6372 3178 Egypt Fax: +65 6224 1091 Tel: +20 69 3710 130 Mail: [email protected] Fax : +20 69 3710 140 Website: www.asiainsurancereview.com/ Mail: [email protected] Conferences/Register/cnfid/20661 Website: http://ifegypt.net/sharmrend/index.html
United Kingdom
World health insurance innovation congress 2020 15 - 16 January 2020, London, UK Theme : « Innovating for growth and protection » Tel: +86 21 5830 0710-8006 / +86 15901827307 Mail: [email protected] Website: www.szwgroup.com/world-health-insurance -innovation-congress/index.aspx
Atlas Magazine . N° 165 . November 2019 34 Reshuffles
Kenya Saham Finances Maroc
Britam Holdings Nadia Fettah Alaoui, former general manager of Saham Finances Maroc, has joined the Moroccan Margaret Kathanga is leaving Britam Holdings after government. She was appointed Minister of Tourism 13 years of service within the Kenyan group. M. following a cabinet reshuffle on October 9, 2019. Kathanga was operating as chief executive officer A graduate of HEC Paris, Nadia Fettah spent 22 (CEO) of Britam General Insurance. Matters years in consulting, finance and insurance. previously addressed to M. Kathanga shall be directed to Jackson Theuri, current Chief Operations Officer (COO). Wafa Assurance
Britam is Kenya’s fourth non-life insurer with a Meriem Benkhayat has been promoted executive turnover of 8.048 billion KES (79.441 million USD) in manager in charge of Wafa Assurance's finance 2018. division. With a master's degree in management
control from the Higher Institute of Business and Morocco Business Administration (ISCAE, Morocco), M.
Benkhayat began her career in 1999 as equity Chedid Re Morocco manager at Attijari Management. Lazhar Charfeddinne has joined Chedid Re She later worked as a management controller with Morocco as general manager. the shipping company COMANAV. In 2008, she A Tunisian national, L. Charfeddinne has worked in joined Wafa Assurance as head of investments and several countries. He began his career in Tunisia with treasury and then as executive investment Tunis Re, then joined Africa Re's Casablanca office manager. as regional manager. From Morocco, L. Charfeddinne moved to Abu Dhabi where he was, for many years, entrusted with various duties including that of executive vice president reinsurance at Abu Dhabi National Insurance Company (ADNIC). Chedid Re, a Beirut-based reinsurance broker, has offices in Casablanca, Dubai, Limassol, London and Riyadh.
Atlas Magazine . N° 165 . November 2019 35