MeBy returning to regular postcovid, he influenced the technical profitability of the Wafa Assurance Group in 2021. Revival of stricter rules for provisioning outstanding debt. At Life Branch, the technical result was down 4.9% to 421 million dirhams, perhaps integrating the exacerbations of Covid-19 pandemic-related claims, as top management explained in the six-month results. ..
In the case of Chairman and Chief Executive Officer Ramse Arrowb “In 2020, there was a limited three-month confinement and there was almost no vehicle movement (…). That is, 2021 returned to historic and unprocessed files in 2020. The rebound is linked to the stock... For car complaints, R. “We have confirmed that since 2019, the steps taken to stop the fraudulent phenomenon at the sector and Wafa Assurance levels have begun to bear fruit in reducing loss rates,” Arroub said. ..
Treasury results benefit from stock market recovery
VMeanwhile, Wafa Assurance’s financial results, taking advantage of the 2021 stock market recovery, are in the green. This development is the result of financial market recovery and careful provisioning policies. “. At Life, the financial results are up 3.2% at 8.7 MDH, reflecting the quality of the investment portfolio. It should be noted that this result is mainly due to the insured by the profit sharing (savings) mechanism. Taking into account the improvement in non-technical results, the company’s net result in 2021 will increase by 32.6% to 536 million dirhams. Therefore, ROE is 9.5%. Note that Wafa Assurance sales have reached a new level of 9.08 billion dirhams, up 8.5%.
Wafa Life Insurance A promising start for Egypt
2021 was also characterized by an increase in subsidiaries driven by support and life business. Their revenue reached approximately 1.4 billion dirhams, an increase of 20.2% compared to 2020, strengthening the Group’s contribution to sales to 14.1%. Internationally existing subsidiaries contribute 11.4% to the company’s bottom line. Regarding Wafa Life Insurance Egypt, Ramses II points out that: “The subsidiary actually started in November 2021. The activity is only a few weeks. The first feedback on the product is highly appreciated and positive. We plan to do a full campaign by the end of June and the end of the year. Our optimism and commitment have not been compromised and have been strengthened by our field visits. “ In addition, Wafa Assurance has closed and published its consolidated financial statements under IFRS for the first time. Two indicators to keep in mind: sales increased 7.8% to 9.7 billion dirhams, as damage claims returned to past levels after the decline recorded in 2020 was associated with the impact. 6.4% to 424 million dirham confinement and increased claims of life.
Ukrainian War and Inflation: Details from Arroub
Asked about the potential impact (direct or indirect) of the Ukrainian conflict on the activities of the group, the CEO declared: From the perspective of counterparties (no reinsurance company: editor’s note) and from the perspective of investing in portfolios. ” After returning to details on the global inflation situation, and the actions taken by the Fed, ECB, and even the Bank of Japan, R. Arroub specified:“Earlier this year, we paid attention to these inflationary tensions highlighted by the conflict. They are at least imported or taken over by the Moroccan market. This inflation causes a slowdown in the economy and subsequent depreciation of assets, as it will never be a good neighbor to financial markets. Fortunately, in Morocco, a certain number of prices are controlled and should be financially heavy, but not for households and in any case for basic necessities. “ And in summary: “Inflation leads to worsening and even slowing economic ratios. Some even mention the risk of a US recession if the Fed shrinks its balance sheet at the same time as rising raw material prices. Arriving late in Europe. And then arrive here, but the recession is alleviated by public mechanisms. ”