Insurance companies in Morocco generated a net profit of MAD4.2bn ($428m) in 2023, 6.2% higher than in 2022, states the central bank, Bank Al-Maghrib (BAM), in its annual financial stability report released recently.
This reflects the good performance of the life and non-life branches which improved the average rate of return on equity (ROE) to 9.6%.
BAM says that stress tests carried out in the insurance sector highlight the overall resilience of insurance companies in the face of unfavourable macroeconomic and technical conditions. The insurance sector was able to maintain its growth, "although at a rate below that usually recorded", notes the report.
The 2023 turnover of MAD55.9bn of the insurance market represented an increase of 3.9% over 2022 when the pace of growth was 8.5%. Growth in 2023 was mainly driven by the non-life branch (5.8%). Growth in the life branch slowed to 1.8% in 2023 compared to 11.9% on average over the last 10 years.