(Ecofin Agency) - Wafa Assurance, the insurance branch of Morrocan bank Attijariwafa Bank, issued a profit warning about its 2018 results on March 1, 2019. Its managers expect MAD600 million of net profit.
This is the poorest performance ever recorded by the insurer since 2015. According to the Wafa Assurance, this is due to the rise of the claims ratio that rose to MAD350 million thus reducing the earned premiums. Claims ratio was one of the reasons for the decrease by MAD38 million of its net profit despite a 7% rise in its turnover.
Casablanca stock exchange’s response to this announcement was unfavourable. The firm’s shares dropped 4.07% on the exchange, a loss which is the most important this year. Let’s also note that MAD3,651 is the lowest value of this share since February 2, 2017.
Claims ratios have been negatively affecting insurance companies’ financial performances since 2017 (at least). According to a report published by the Moroccan insurance supervisory and social security authority, the benefits and costs paid by insurers and reinsurers operating in Morocco increased by 8.7% between end 2017 and end 2018.