Preliminary results for 2009 show that gross written premiums in Tunisia rose 7.25% to TND1,032 million (US$702 million), while claims paid increased 12% to TND568 million, said the Federation Tunisienne des Societes d'Assurances (FTUSA).
"The figures indicate the progress achieved in paying claims which used to incur much effort and time. The market is healthier now," FTUSA Secretary General, Mr Kamel Chibani said in an interview with MiddleEast Insurance Review.
However, he warned of an increasing size of material damages due to new models of vehicles. "The government has been giving incentives to the public to buy new economical cars which consume less gas. Therefore, the comprehensive motor line prospered in the last couple of years and this has led to increasing claims in that area."
Although growth in GWP was slower last year compared to previous years, profitability was satisfactory and expected to have improved in 2009, said Mr Abdellatif Chaabane, President of the Comite General des Assurances. The regulator said: "It is one of the outcomes of previous reforms which included amending the motor laws in 2006. Many insurers are now strongly promoting this line after years of avoiding it."
He added that preliminary results of some companies have shown they are profitable. Star and Comar, for example, achieved TND34 million and TND17 million respectively. Other companies which used to suffer losses have turned around, such as Lloyd's which achieved TND7 million in profits and Assurances Mutuelles Ittihad which made TND11 million.
Mr Chaabane expects the market to pick up in 2010 and quickly overcome the effects of the crisis. "This is especially with our prudent investment policy. We are not widely exposed to foreign markets as only 2% of the market investments are placed overseas…even though premiums have been affected, the overall conditions are sound."
Tunisia: Mutual insurers mull over forming joint life company
Tunisia's four mutual insurers - Caisse Tunisienne de Assurances Mutuelles Agricoles (CTAMA), Groupe des Assurances Mutuelles (MGA), Assurances Mutuelles Ittihad (AMI) and Mutuelle Assurance de l'Enseignement - are considering the possibility of creating a joint life insurance company.
Mr Mansour Nasri, Director General of CTAMA & MGA, told MiddleEast Insurance Review this was in response to the legal requirement to separate life and non-life operations. "It is better than establishing a separate life provider for each company and it will be a step forward in consolidating the market. Hopefully, something will materialise by the end of this year."
Mr Nasri expects life insurance to boom in Tunisia as it has been growing at a faster pace in the last few years. "I believe it will be one of the elements which will help the market to further grow," he said.
Bahrain: Arig's premiums grew 9% to US$177 mln in 1H10
Arig's gross premium written increased by 8.6% to US$177.1 million for the first half of 2010, compared to $163 million in the same period last year. Its non-life combined ratio was 97.3%.
Impacted by the volatile global equity markets, the company recorded a $2.8 million loss for the first half of the year against a profit of $8.8 million in the first six months of 2009, Arig said in a press statement.
Shareholders' equity stood at $245.4 million compared with $267.3 million at the year-end following distribution of $13.2 million in dividends for 2009. In addition, Arig's book value per share registered $1.20 compared with $1.27 at the year-end.
Qatar: QIC's gross premiums reached US$352 mln in 1H10
Qatar Insurance Co's (QIC's) gross premiums increased by 1.6% y-o-y to QAR1.28 billion (US$351.7 million) in the first half of 2010, while its net profit grew 0.4% y-o-y to QAR335.7 million as expenses, claims and commissions grew faster.
According to its financial statements, there was a 12.2% rise in gross claims to QAR480.7 million, a 19.6% increase in net commission to QAR61.1 million, and a 2.2% fall in reinsurance and other recoveries to QAR213.8 million.
QIC said its net earned premium and net underwriting results grew 8.4% y-o-y and 1% y-o-y, respectively, to QAR621.2 million and QAR244.6 million. In the same period, its total income grew 4.2% to QAR447.6 million on 9.4% jump in investment income to QAR181.8 million despite posting a 5.5% decline in rental income to QAR19 million.
Total equity amounted to QAR2.99 billion on a capital base of QAR743.24 million and earnings per share grew marginally to QAR4.52 in the first half of 2010 compared to QAR4.50 in the same period last year.
Jordan: Social Security Corporation to expand health insurance coverage
The board of the Social Security Corporation (SSC) has referred its decision to the cabinet to extend its health insurance coverage to subscribers and retirees who are currently uninsured, said media reports.
The proposed move aims to boost health coverage for workers in small- and medium-sized private companies. Under the plan, the board has agreed to establish a separate fund for health insurance and to form an ad-hoc committee to come up with a special health insurance system for its subscribers and retirees.
Currently, the number of corporation's beneficiaries and families without health insurance is about 1.3 million.
