Sanlam’s Moroccan subsidiary recorded fairly sustainable commercial dynamics, with premiums issued to 5.6 billion dirhams increasing by 9.7%. The loss ratio fell 2.9 points in 2021 to 98.7%, which is better than 2019 (99.5%). After net income recovers 79.3% to 360 MDH, the company plans to distribute a dividend of 35 DH per share to 20 DH last year.
The potential merger between Sanlam and Allianz’s African activities raises many questions here related to the Moroccan subsidiary of the South African group. At a meeting announcing its annual financial results, Saham Assurance’s management showed that it was sticking to the group’s press release at the end of December last year. Under the control of Sanlam in 2018, the company performed well in 2021. On the commercial side, sales are back to growth at 5.6 billion dirhams, up 9.7%, primarily thanks to portfolio development.
“There is price competition that is pulling down the market. I don’t want to participate in this race. The structuring of the portfolio allows us to pursue growth by volume rather than playing by price. This is us. Does not mean that is more expensive, but that you can sell more than just the price, “says Yahia Chraibi, general manager of Saham Assurance.
The company’s main intervention market, the Non-Life segment, improved sales by 9.2% to 4.7 billion dirhams. More than half of the premiums issued come from car branches. The rest is divided into health (24%) and business risk (22%).
All of these markets grew last year, including 8.2% for automobiles and 9.3% for healthcare. Life Business generated sales of 919 million dirhams, up 12.2%. This is 17% of the total premium for 2021. Without a major banking partner, the revenue contribution for this segment should be stable at around 20%. Banking networks are an excellent distribution channel for product life insurance.
The company is working to diversify its distribution network to reduce its reliance on bancassurance. In addition, it focuses on the development of Provident products, and margins are more attractive than savings products.
Protection currently accounts for 32% of life’s sales. “The most important thing for us is to develop profitable segments such as automobile and non-life insurance health insurance and life insurance funded insurance,” said Deputy CEO Mohammed Affifi. Indeed, the total ratio of car branches is 93%, which welcomes management. It has been shown that that of health is less than 100% against a sector average of about 120%.
This difference is primarily explained by the company’s position in complementary insurance offers with low loss rates. Overall, the non-life insurance ratio fell 2.9 points from 2020 to 98.7%, but is below the 2019 level (99.5%). The recovery in financial markets helped improve financial results by 97% to 557MDH. The final result will be 360 MDH compared to 201 MDH in 2020 and 406 MDH in 2019.
At the next shareholders’ meeting, Saham Assurance will propose a dividend of 35 DH per share for last year’s 20 DH coupon. As of the end of 2021, capital increased 6.2% to 4.8 billion dirhams. The solvency margin is 198%, which is very comfortable and has been improved by 17 points.
Frank Fagneon / ECO Inspiration