N° 81
May 2011
Atlas Conseil International
Atlas Magazine
Insurance news from Africa and the Middle East
Editorial CLOSE UP p. 2
A COMPANY,
A STORY p. 3 - 6
Between fear and hope SOCABU (Burundi)
W hile signs of economic recovery are being FOCUS p. 7 - 13
Summary
confirmed with the publication of the 2010 The nuclear accident in
balance sheets in net improvement, reinsurers are Fukushima : still a long
once more hunted by skepticism. way to go
The year 2011 is looming badly. Munich Re, the NEWS p. 14 - 21
world’s insurance business leader, is posting results
below expectations as at 31 March 2011. Other Insurance news
reinsurers are following the footsteps of Munich Re. STATISTICS p. 22 - 23
It was from Oceania that the first signs of concern
Morocco 2010
came with disastrous floods in Australia and a
major earthquake in New Zealand. AGENDA &
RESHUFFLES p. 24 - 25
The Arab spring then ensued with its share of
riots and uprisings. Starting from Tunisia, then
relayed by Egypt, this movement is now Kenya :
spreading in Yemen and Syria. No country in the
Redesign and simplification
region is safe from revolt. of insurance policies.
In Africa, piracy on the shores of Somali coasts More page 14
is straining transportation results while Côte Nigeria :
d’Ivoire, the economic backbone of Western The insurance industry has
Africa, is sinking into civil war triggering turmoil and lost 1.3 billion USD because
unrest in neighbouring countries. of the crisis.
But, it was from Japan that the final blow More page 15
News
came; earthquake, tsunami and a nuclear Algeria :
accident have caused a loss of unprecedented Market turnover rose by 4%
scale in a hyper-developed economic in 2010.
environment. More page 18
Jordan :
We only hope that loss experience will be
Odyssey Re acquires 4.8%
milder for the remainder of the year 2011, and
of Jordan Kuwait Bank.
that the European financial crisis and the
More page 19
American deficit will not hinder the growth of
United States:
premiums volume.
A series of tremendous
tornadoes.
More page 21
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Close up
SCOR is now the second largest CIMA addresses outstanding
life reinsurer in the United States. payments.
Strong Momentum, Scor’s strategic plan, is on track. To improve the situation of arrears that are
The French reinsurer has announced the acquisition threatening the viability of insurance companies,
of mortality risks portfolio of Transamerica Re, a CIMA introduced on April 11, 2011 significant
division of the Dutch group Aegon. changes to the insurance code.
The transaction amounts to 917 million USD and • It is henceforth forbidden for an insurance company
includes the takeover of the Irish subsidiary TIRI. The
to renew a contract whose premium has not
mortality premiums underwritten in 2010 by
been paid;
Transamerica Re amounted to 2.2 billion USD.
Henceforth, life insurance accounts for 56% of • In case of failure to pay the premium or part of
SCOR’s overall business, compared to 45% the premium within the agreed time, the
previously. Thanks to this transaction, Scor has insurance contract is automatically and lawfully
become the second life reinsurer in the United terminated;
States, consolidating, thus, its position worldwide. • No insurance intermediaries are allowed to collect
Aviation Insurance: loss experience premiums, to make out or receive checks made
payable to their order. This prohibition does not
remains above average. apply to payments made in cash not exceeding
Despite a growing number of passengers and 1 million FCFA (2 278 USD);
higher investment in airlines' fleets, insurance • Finally, intermediaries have a maximum period of
premiums have increased by only 4% in 2010 while
thirty days to remit premiums to the insurer. In
loss experience remains above average. The latter case of non payment of contributions received
reached 2.1 billion USD in 2010 with six losses over in a timely manner, the non-paid sums shall yield
100 million USD. This is twice as much as a standard interests rates twice as much as the discount
year. The 2010 air disasters have also claimed the rate.
lives of 601 people. African claims account for 409
million USD in 2010, while their average long-term ASEAN region : establishment of a
rate amounts to 95 million USD.
compensation fund for victims of
Growth of travel insurance in natural catastrophes.
emerging markets. Following the initiative of Indonesia, the finance
Americans, followed by Canadians remain the ministers of the ASEAN region have expressed their
largest travel insurance policyholders . However, the support for the project designed to establish a
growth rate of this type of risk is higher in emerging compensation fund for the victims of natural
countries. For example, Brazil and India have shown disasters. No clear format of the insurance
growth of 12.1% and 10.6% between 2006 and 2010. mechanism has been revealed. Various options are
In China, the travel insurance market has jumped under consideration. The members of ASEAN are
from 20.2 million USD in 2003 to 54 million USD in targeting the establishment of the fund before the
2010. With the increasing number of events and end of 2011.
natural disasters that shook the world, operators
have become increasingly more inclined to get Japanese insurers are helping
covered against uncertainties. Consumers also victims in search of their
have more access to insurance through credit
cards and offers from tour operators. insurance certificates.
Japanese non-life insurers have established a joint
S&P is optimistic about insurance assistance center designed for policyholders who
in the Maghreb. have been affected by the earthquake and the
tsunami of March 11, enabling them to receive
A study carried out by S&P has indicated that financial compensation. This center helps victims
insurance in the Maghreb has an interesting growth regain their insurance policies. A free phone
potential. In the long-term, its expansion may be number was made available to policyholders, their
higher than that of GDPs because of the low families and relatives. A website has also been
penetration rates and the continuous market opened. The General Insurance Association of
stabilization In the short term, recent political events, Japan (GIAJ) is using aerial and satellite
however, are affecting the sector's development. photography to quickly compensate policyholders
whose properties have totally disappeared.
2
Atlas Magazine . N° 81 . May 2011
Atlas
A company, a story
SOCABU (Burundi)
A fter years of hardship, Burundi got back to
growth. In 2009, insurance has been
developing at a +13.5% pace, well above that of
the Burundi market. Despite the increase of its loss
experience in 2009, the company is posting an
excellent result thanks to sound financial incomes.
the GDP with only +3%. Estimated at about 1.4 million USD, the latter
The Société d’Assurances du Burundi (SOCABU) account for 21.5% of the written premiums of the
has been at the core of this development. year.
Established in 1977, SOCABU has dominated the More than thirty years after its creation, SOCABU
insurance market in Burundi. From its headquarters is reporting substantial growth in the recent five
in Bujumbura, the company has been underwriting years. With life insurance growing at a +36.2% pace
life and non-life risks all over the country. per year against a +6.1% for non life business, the
With a +12.8% average annual growth of its company could bring a new breath in its
turnover between 2005 and 2009, SOCABU has endeavour for critical size.
managed to consolidate its position as a leader of
SOCABU
Is, in 2009 :
• a capital of 237 000 USD
• a turnover of 6 631 372 USD
• a shareholder’s equity of 6 294 227 USD
NDUWIMANA Onésime SINDAYIGAYA Augustin • a net result after tax of 924 541 USD
General Manager Life insurance manager • a ROE of 14.7%
• a loss ratio of 74.5%
Management • a combined ratio of 115.9%
• 2 agencies and a nationwide presence via
NDUWIMANA Onésime : General Manager
the National Postal Administration
SINDAYIGAYA Augustin : Life insurance manager
• 173 employees
KANYANGE Geneviève : Administrative manager
KIGEME Elsie Carmen : Financial manager
BAREGERANYE Pierre Claver : Sales manager
NDIKUBWAYO Athanase : Counsellor to the general
manager
HAKIZIMANA André : Head of the internal audit Contact
department
Head office : P.O. Box 2440 Bujumbura
Burundi
Phone : +257 22 20 90 00
Main shareholders Fax : +257 22 22 68 03
• State of Burundi 25% Email : socabu@socabu-assurances.com
• Other companies and individuals 75% Website : www.socabu-assurances.com
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Atlas Magazine . N° 81 . May 2011
Atlas
Main technical highlights: 2005 - 2009
Figures in USD
2005 2006 2007 2008 2009
Goss written premiums 4 100 067 4 777 290 5 217 004 6 125 145 6 631 372
Written premiums net of
3 410 824 3 985 674 4 385 276 4 976 794 5 398 915
reinsurance
Earned premiums gross of
NA NA 3 531 462 4 312 114 4 752 532
reinsurance
Incurred losses gross of
2 640 297 3 258 803 3 592 486 2 811 418 3 542 673
reinsurance
Loss ratio (*) NA NA 101.7% 65.2% 74.5%
Management fees 1 824 400 2 307 465 2 084 543 2 430 044 2 741 389
Technical result 640 933 782 988 873 601 1 213 315 1 193 109
Financial incomes 1 216 317 956 975 1 225 533 1 497 713 1 426 609
Net result 48 061 710 409 828 175 1 058 459 924 541
Exchange rate as at 31/12/2005 : 1 BIF = 0.00098 USD ; as at 31/12/2006 : 1 BIF = 0.00096 USD ; as at 31/12/2007 : 1BIF = 0.00088
USD ; as at 31/12/2008: 1BIF = 0.00081 USD ; as at 31/12/2009: 1BIF = 0.00079 USD.
(*) Loss ratio = Incurred losses / Earned premiums; NA: non available
Evolution of premiums, losses , management expenses and results
8000
Figures in thousands USD Gross written premiums
7000 Gross incurred losses
6000 Management expenses
Net result after tax
5000
4000
3000
2000
1000
0
2005 2006 2007 2008 2009
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Atlas Magazine . N° 81 . May 2011
Atlas
Turnover’s evolution per class of business : 2005 - 2009
Figures in USD
Shares 2009 Evolution
2005 2006 2007 2008 2009
2008-2009
Non life 3 441 888 3 528 560 3 496 908 4 308 737 4 364 929 65.8% 1.3%
- Motor 2 000 802 2 035 015 1 960 254 2 106 234 2 484 009 37.5% 17.9%
- Marine 922 371 842 268 977 654 1 194 843 820 027 12.4% -31.4%
- Fire and other
518 715 651 276 559 001 1 007 660 1 060 893 16% 5.3%
property damage
Life 658 179 1 248 731 1 720 096 1 816 407 2 266 443 34.2% 24.8%
GRAND TOTAL 4 100 067 4 777 290 5 217 004 6 125 145 6 631 372 100% 8.3%
Exchange rate as at 31/12/2005 : 1 BIF = 0.00098 USD ; as at 31/12/2006 : 1 BIF = 0.00096 USD ; as at 31/12/2007 : 1BIF = 0.00088
USD ; as at 31/12/2008 : 1BIF = 0.00081 USD ; as at 31/12/2009 : 1BIF = 0.00079 USD.
Breakdown per class of business in 2009
Life 34%
Motor 38%
Fire and other
property damage Marine 12%
16%
SOCABU’s market shares in Burundi : 2006-2009
Life and non life markets Non life market
5 1.3 % 5 1.0 % 5 2 .1%
4 8 .7 % 4 9 .0 % 4 7 .9 % 4 9 .7 % 5 0 .3 % 5 6 .5 % 5 8 .4 %
5 3 .9 % 5 .0 %
4 6 .1% 4 7 .0 %
4 3 .5 % 4 1.6 %
2006 2007 2008 2009 2006 2007 2008 2009
SOCABU Rest of the market SOCABU Rest of the market
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Atlas Magazine . N° 81 . May 2011
Atlas
Life market Motor
5 9 .1% 6 1.1% 6 0 .8 %
7 9 .7 % 6 0 .1%
7 5 .5 % 7 8 .5 %
7 0 .0 %
4 0 .9 % 3 8 .9 % 3 9 .2 % 3 9 .9 %
2 4 .5 % 3 0 .0 %
2 1.5 %
2 0 .3 %
2006 2007 2008 2009
2006 2007 2008 2009
SOCABU Rest of the market SOCABU Rest of the market
Marine Fire and other property damage
6 5 .5 %
6 7 .5 % 5 9 .8 % 6 0 .0 % 6 0 .3 %
5 2 .8 % 5 2 .6 % 5 2 .8 %
4 7 .2 % 4 7 .4 % 4 7 .2 % 4 0 .2 % 4 0 .0 % 3 9 .7 %
3 4 .5 %
3 2 .5 %
2006 2007 2008 2009 2006 2007 2008 2009
SOCABU Rest of the market SOCABU Rest of the market
Evolution of ratios: 2007-2009
160% 141.7%
140% 115.9%
120% 101.7% 104.9%
100%
74.5%
80% 65.2%
60% 40.0% 39.7% 41.3%
40%
20%
0%
2007 2008 2009
(1)
Loss ratio Management expenses ratio Combined ratio
(1) Management expenses on gross written premiums
6
Atlas Magazine . N° 81 . May 2011
Focus
The nuclear accident in Fukushima :
still a long way to go
N early two months after the
catastrophe at
Fukushima nuclear power plant
the
30 km around the plant and the establishment
of an area closed to people over a radius of
20 km;
in North-Eastern Japan, the - a high contamination of sea level near the plant;
situation remains critical. The
radioactive leaks continue to - an alarming increase in the level of radioactivity
pollute the atmosphere around within the buildings housing the reactors
the plant which was damaged by the March 11, 1 and 3 ;
2011 earthquake and tsunami. - a long-lasting pollution with a large release of
radioactive material having serious effects on
A 7-level major accident health and environment;
- the contamination of foodstuffs and drinking
Leaks are now highly radioactive, including
water for years.
iodine 131 and cesium 137. The severity level is
•
increased from 5 to 7, that is, the maximum level
with reference to the nuclear and radiological
events of INES (International Nuclear Event Scale).
This level has so far been attributed only to the
Chernobyl catastrophe.
The consequences of this disaster will not be known
for a long time. We may already note:
- the evacuation of nearly 200 000 people;
- the extension of the exclusion zone from 20 to
The seven levels of severity of nuclear accidents according to the international
INES scale
Level Description Consequences
1 Operating anomaly * No consequence on the site
* No off-site consequence
2 Incident
* Contamination of on-site staff
3 Serious incident * Very low off-site releases
* Local consequences: minor off-site release of radioactive
4 Accident
materials
* Wider consequences: limited offsite release of radioactive
5 Accident
materials
6 Serious accident * Significant off-site release of radioactive materials
* Major release of radioactive materials with widespread
7 Major accident
health and environmental effects
7
Atlas Magazine . N° 81 . May 2011
Focus
International Nuclear Event Scale (INES)
Major accident
Serious accident
Accident
Accident with wider consequences
Accident with local consequences
Serious incident
Incident
Incident
Anomaly
Deviation
Source : INES
The crisis is nowhere near conclusion compensation of losses such as the contamination
of water and arable land. This cost is likely to reach
TEPCO, the power company owning the site,
an additional 24 billion USD. Should the crisis go on,
announced in mid-April that it would not be able to
regain control of the reactors before nine months. It this bill could exceed 130 billion USD according to
would need no less than three months to lower the Bank of America Merrill Lynch.
level of radioactivity and between three and six
To cope with these exceptional expenses, TEPCO,
months to cool the reactors.
which is already overburdened by a debt of 91
Only then will the task of dismantling and cleanup billion USD, compounded since the accident by a
of the four reactors out of the six commence at the
new bank loan worth 24 billion USD, is most likely to
Fukushima Daiichi; (reactors 5 and 6, spared by the
disaster, could be retained). be financially rescued by the Japanese State. It will
also initiate a broad cost-reduction program,
These operations starting with staff members’ wage cuts.
will last for
decades and may Nuclear risk management
extend up to 100
years according to Given the specificity of the nuclear accident, its
British experts. disproportionate impact, and the lack of modeling
in this area, risk management shall stand as a
serious challenge. The regulations in force along
with international conventions are so far the only
TEPCO will have to pay a heavy bill
framework whereby the nuclear industry is being
Primarily responsible for the crisis, TEPCO, which governed.
supplies a third of Japan's electricity, has
The Paris Convention
proceeded to the indemnification of victims. It will
disburse an initial down payment of 12 000 USD for The Paris Convention on third party liability in the
each evacuated family. In total, nearly 48 000 field of nuclear energy was enacted in 1960 and
households living within a radius of 30 km around amended in 1964 and 1982. It consists primarily of
the plant will benefit from this first disbursement. The countries of Western Europe: Germany, Austria,
bill is poised to reach at least 600 million USD in Belgium, Denmark, Spain, Finland, France, Greece,
addition to the 24 billion USD required to solve Italy, Luxembourg, Norway, Netherlands, Portugal,
leakage problems on the site. Moreover, TEPCO will United Kingdom, Sweden, Switzerland and Turkey.
have to cover medium and long-term
8
Atlas Magazine . N° 81 . May 2011
Focus
Supplemented in 1963 by the Brussels Convention, The extension of the
the Treaty of Paris provides a compensation period of coverage
scheme in three stages. Prime responsibility falls from 10 to 30 years for
upon the shoulders of the plant operator, then
bodily injuries caused
comes the State which intervenes in the second
stage to participate in compensation. Finally, it is to third parties and
the countries signatories of the Brussels Convention the integration of the
which will be involved. cost of environmental
degradation are also
The Vienna Convention under study.
Adopted three years after the Paris Convention, the
Vienna Convention on civil liability for nuclear Maximum amount supported by the
damage came into force only 14 years later in 1977. operator in third party liability
It was designed to address these issues
internationally. Despite its larger scope, it comprised Country Amount in millions USD
only 11 states in the late 1980s. Its revision in 1997
Germay 3 641
has allowed the increase of its compensation
ceiling, the broadening its scope of coverage and Japan 1 456
the adoption of the convention on supplementary
compensation for nuclear damage. According to Spain 1 019
this convention, the sums allocated for Switzerland 963
compensation amount to 262 million USD.
Belgium 433
In 1988, the adoption of the Joint Protocol
pertaining to the application of the Vienna Finland 277
Convention and the one of Paris, which entered
Poland 238
into force in 1992, allowed the extension of the
geographical scope of the international plan of Roumania 238
nuclear liability.
France 133
The operator’s third party liability China 44
The Paris Convention and Source : OECD
that of Vienna establish the
liability of operators of Reinsurance pools: mechanisms better
nuclear power for all suited to risks
damage to property and
While the probability of the occurrence of a serious
persons in the event of an
nuclear accident is low, its cost remains too high to
accident. Operators are be borne by a single insurer. Capacity would be
required to underwrite a third seriously inadequate. In addition, liability and
party liability insurance to compensation plans established by the Paris and
cover nuclear risk. Vienna conventions have shown loopholes
pertaining to indemnification ceilings and amounts,
For damage to property, each country applies the not to mention that many countries have not
local legislation in force. In general, operators are adhered to these conventions.
not required to underwrite policies covering
To ensure higher amounts of compensation, insurers
damage to their facilities.
from countries that have developed a nuclear
Currently the limit of third party liability coverage for activity, have merged into reinsurance pools. There
operators is set at 132 million USD. Under review, the are currently more than twenty pools throughout
Paris Convention will raise this ceiling to 1 billion USD
the world. Like French Assuratome, there are similar
to ensure a fair and adequate compensation to
victims. structures in Germany, China, USA, Spain, Japan,
Switzerland, and United Kingdom. Amounts of the
The total amount of compensation provided by the
guarantees offered vary from one pool to another.
revision of the Brussels Convention will amount to 2.1
billion USD.
9
Atlas Magazine . N° 81 . May 2011
Focus
The ten main pools
Country Pool name Capacity in millions USD
Japan Japan Atomic Energy Insurance Pool (JAEIP) 1 060
Pool Suisse d’Assurance contre les Risques
Switzerland 891
Nucléaires
France Assuratome 760
United Kingdom Nuclear Risk Insurers Limited (NRI) 751
Deutsche Kernreaktor
Germany 725
Versicherungsgemeinschaft (DKVG)
China China Nuclear Insurance Pool (CNIP) 482
Sweden and
Nordic Nuclear Insurers (NNI) 263
Finland
United States American Nuclear Insurers (ANI) 154
Syndicat Belge d’Assurance Nucléaire
Belgium 139
(SYBAN)
Aseguradores de Riesgos Nucleares a.i.e.
Spain 113
(Espanuclear)
Source : Assuratome
Nuclear risk mutuals Nuclear energy worldwide
In recent years, other structures have emerged: There are currently 442 reactors operating in 32
mutual insurance associations: Elini (European countries. They produce between 13 and 15% of the
Liability Insurance for the Nuclear Industry) for third global electricity and cover only 2% of energy
party liability and Emani (European Mutual needs.
Association for Nuclear Insurance) for property
damage insurance. In addition, 57 reactors are under construction
Being direct competitors of worldwide and 200 in project, including 47 in Asia.
pools, these mutuals have
With 104 reactors, the United States. stands as the
been set up by the European
most “nuclearized” country in the world, followed
nuclear industry in order to
by France with 58 reactors and 1 100 sites where
lower insurance premiums. A
nuclear activities are carried out. Japan ranks third
similar arrangement also
with 55 reactors. The 17 Japanese plants account
exists in the United States with
N EI L (N u c l e a r E l e c t ri c for 35% of the country’s electricity needs.
Insurance Limited).
10
Atlas Magazine . N° 81 . May 2011
Focus
Number of operating nuclear plants and reactors in 2011
Country Number of Number of Share of the nuclear power Reinsurance pools
plants reactors in the electricity production
United States 70 104 20% American Nuclear Insurers (ANI)
France 19 58 78% ASSURATOME
Japan 17 54 35% The Japan Atomic Energy Insurance Pool
Russia 10 32 17.8% Russian Nuclear Insurance Pool
Canada 5 23 - Nuclear Insurance Association of Canada
South Korea 4 20 35% The Korea Atomic Energy Insurance Pool
United
10 19 22% Nuclear Risk Insurers Limited
Kingdom
Deutsche Kernreaktor
Germany 12 17 22%
Versicherungsgemeinschaft
India 7 16 3% -
Ukraine 5 15 50% Ukrainian Nuclear Insurance Pool
China 5 13 1.8% China Nuclear Insurance Pool
Sweden 5 10 45% Swedish Atomic Insurance Pool
Spain 6 8 - Espanuclear
Syndicat Belge d'Assurance Nucléaire
Belgium 2 7 55%
(SYBAN)
Czech
2 6 - The Czech Nuclear Insurance Pool Office
Republic
Average annual loss amount of a 4 500 TEU ship : 359 000 USD/year Insurance Pool of the
Nuclear Energy
Taiwan 3 6 -
Republic of China (N.E.I.P.R.O.C.)
Slovakia 2 5 65% Slovak Nuclear Insurance Pool
Schweizer Pool fur die Versicherung von
Switzerland 4 5 41%
Nuklearrisiken
Hungary 1 4 - Hungarian Nuclear Insurance Pool
Bulgaria 2 2 - Energy Ins. Co. Ltd.
Pakistan 2 2 - -
USD/ship/year
North Korea 2 - -
Finland 1 2 - Finnish Atomic Insurance Pool
Romanian Pool for the Insurance of Atomic
Romania 1 2 10%
Risks
Argentina 1 2 - -
Armenia 1 2 40% -
The South African Pool for the Insurance of
South Africa 1 2 6.6%
Nuclear Risks
Mexico 1 2 - Atomic Mexican Pool
Brazil 1 2 - Coordenacao de Riscos de Energia
BV Bureau van de Nederlandse Pool voor
Netherlands 1 1 -
Verzekering van Atoomrisico’s
Israel 1 1 - -
TOTAL 204 442 - -
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Atlas Magazine . N° 81 . May 2011
Focus
The three most serious nuclear ► In Europe, 143 reactors are subjected to safety
tests.
events
► Germany has announced the discontinuation of
In sixty years, the nuclear industry has had six the 7 oldest reactors of its fleet, expressing its wish
accidents of level 5 severity and above. The three to phase out nuclear power "as soon as
most serious disasters are: possible."
• Three Mile Island (1979). Taking place in the ► Italy, the only G8 country not to have nuclear
United States following a series of human and power plants in operation on its territory since the
technical failures, the accident cost the global Chernobyl accident, has given up its nuclear
insurance market 1 billion USD. program. An investment of 29 billion USD was
• Chernobyl (1986). Twenty-five years after the initially planned to build eight reactors.
explosion of a reactor at the Chernobyl plant, ► In the United States, the electrician NRG has
Ukraine is still reeling from its fallout. A perimeter given up a project to build two reactors in
of 30 km around the plant is totally prohibited. In Southern Texas. This leaves only 7 reactor
addition, the entire region will remain projects in the country. The Nuclear Regulatory
contaminated for an additional 1000 years. So
Commission (NRC) launched, for its part, a
far no final toll is established for this drama.
Belarus believes that the costs pertaining to the thorough review of the safety of the American
relocation of residents, closure of the reactors.
contaminated site and the medical damages ► Switzerland, South Korea, India and China,
could reach 235 billion USD. The International meanwhile, decided to reconsider their plan to
Atomic Energy Agency (IAEA) has estimated
develop nuclear power plants.
costs at hundreds of billions of dollars, while
Greenpeace came up with the colossal figure
Other countries will continue their nuclear program
of 1 trillion USD.
such as:
► Russia, where five new plants are under
construction. Today, over 17% of the electricity
produced in Russia comes from nuclear power
plants. The authorities' objective is to double that
figure.
► Japan, where the regulator has announced it will
pursue its nuclear program in the archipelago.
► Both France and Britain have explicitly said they
• Fukushima No. 1 (2011). For the catastrophe of will not abandon nuclear energy.
Fukushima, where four reactors are so far out of ► Ukraine has not abandoned nuclear energy and
control, an accurate estimate of damages is still operating four plants. The Chernobyl plant
would take years. continued to operate until 2000.
► Poland where reactors of its first nuclear power
Should nuclear energy be plant will be operational in 2020. Two additional
maintained or given up? plants would be built by 2030.
Regarded as the most serious accident since
Chernobyl, the Fukushima catastrophe has reignited
the debate about security in nuclear plants.
Hence, about thirty reactors may be closed around
the world, especially the older or those located on
a seismic zone. A slowdown in the growth of this
energy is also expected.
Restrictive measures have already been taken in
more than one country :
12
Atlas Magazine . N° 81 . May 2011
Focus
The most serious nuclear accidents worldwide
Name of the plant Date Country Level of severity Consequences
Chalk River December 1952 Canada 5 NA
200 deaths, 500 000 people
Mayak September 1957 Russia 6 irradiated and 10 000 others
evacuated.
Windscale October 1957 Great Britain 5 NA
Saint-Laurent-des
October 1969 France 4 NA
Eaux
Three Mile Island March 1979 United States 5 140 000 evacuated people
Erwin August 1979 United States - A thousand people irradiated
Saint-Laurent-des
March 1980 France 4 NA
Eaux
January-March
Tsuruga Japan - 278 people irradiated
1981
Tchernobyl April 1986 Ukraine 7 4 000 deaths (*)
Vandellos October 1989 Spain 3 NA
Tomsk-7 April 1993 Russia - NA
Average annual loss amount of a 4 500 TEU ship : 359 000 USD/yearpeople irradiated and
600
Tokaimura September 1999 Japan 4
320 000 others evacuated
Mihama August 2004 Japan - Death of 5 employees
Tricastin July 2008 France 1 A hundred people contaminated
Fukushima N°1 March 2011 Japan 7 200 000 people evacuated
(*)UNO’s toll of 2005.
NA : non available
There are currently 442 reactors
operating in 32 countries. They produce
between 13 and 15% of the global electricity
and cover only 2% of energy needs.
13
Atlas Magazine . N° 81 . May 2011
News
AFRICA
LeapFrog is investing in insurer turnover of 10.6 billion FCFA (21.8 million USD) in
2010. ACTIVA group consists of two insurance
Apollo.
companies, a life one (ACTIVA vie) and a non-life
LeapFrog said it had invested 14 million USD in the one (ACTIVA Assurances). The group’s premiums
East African insurer Apollo. It's the most important amounted to 14.7 billion FCFA (30.3 million USD) in
deal ever undertaken in Africa in the field of 2010. The company has also opened a subsidiary
microinsurance. This move allows LeapFrog to have company in Ghana.
platforms in Tanzania, Kenya and Uganda. A year
ago, the group had already invested in the South Kenya
African insurer AllLife. The latter has now doubled in
size. In addition to its life activities, health and
Jubilee posts a record profit.
non-life insurance, Apollo is covering 7.9 million Jubilee’s expansion policy has borne fruit. The
workers in the informal sector. LeapFrog is one of Kenyan insurer unveiled a pre-tax profit of 2.05
the pioneers of the socially responsible investments billion KES (26.2 million USD) in 2010, that is an
in Africa and Asia. The group specializes in increase of 84% over one year. Underwriting results
microinsurance. have yielded a profit worth 523 million KES (6.6
million USD) in 2010 compared to 367 million KES (5
Botswana million USD) in 2009. Assets have risen by 27% at
31.65 billion KES (405 million USD). The company has
Absa Bank is selling insurance recently opened subsidiaries in Burundi and
policies. Mauritius.
The South African bank Absa, controlled at 54% by Pan Africa has confirmed the sale of
the Barclays group is selling insurance policies in APA.
Botswana. This new service is offered by all of its
The insurer Pan Africa has confirmed the rumours
agencies. Absa has confirmed its willingness to
pertaining to talks over the sale of a 40% of its
extend this principle to other African countries.
insurance subsidiary APA. Should these negotiations
Mozambique and Zambia are next on its list. The
come to an agreement, the sale will go to Apollo
bank is also represented in Nigeria, Namibia and
Investment, which already holds 60% of the capital.
Tanzania. It is the largest retail bank in South Africa.
This transaction is submitted to the regulatory
authority for approval and to the shareholders for
Burkina Faso vote.
A new insurance company was born. Redesign and simplification of
The new insurance company Coris Assurance has insurance policies.
officially launched its underwritings in April. It is
dotted with a capital worth 1 billion FCFA (2.2 million Kenyan authorities plan the introduction of
USD). It is specialized in non-life insurance. This is the insurance contracts drafted in simple terms. The
first CIMA zone company to be licensed in fact that policyholders rarely take the time to read
bancassurance and to distribute policies through the documents, written in small print and in difficult
the agency network of Coris bank, its backup words, prompted the legislature to act. A clear and
institution. simplified language will allow better understanding
of contracts.
Cameroon
Mobile phones: insurers are worried
Activa Assurances has obtained its ISO
about rising car accidents.
9001 certification.
Kenyan insurers are particularly concerned about
ACTIVA Assurances has just received the ISO 9001
the increase of car accidents caused by the use of
certification from the Société Générale de
mobile phone while driving. For some insurers, this
Surveillance (SGS). It is during a ceremony held on
loss experience is as important as the one caused
April 14, 2011 in Douala, that the regional manager
by drunken driving. According to the authorities, the
of SGS Central Africa Wilfrid Flottes de Pouzols
total loss of motor insurance amounted to 1.3 billion
handed the certificate over to the Cameroonian
KES (17.9 million USD) in 2009 and the loss ratio
company.
reached 120%. An increase of motor premium rates
Founded in 1998 by Richard Lowe, ACTIVA
Assurances is the third insurer in Cameroon with a is not excluded.
14
Atlas Magazine . N° 81 . May 2011
News
AFRICA
to fight against the acquisition of insurance
Mauritius companies by incompetent individuals or groups. To
Swan Group improves its network. do so, auditors and other experts were appointed.
The deadline for the sale of non-banking
The Swan Group (Swan Insurance and Anglo subsidiaries, which was set for December 2010, has
Mauritius) has recently opened a showroom in its been postponed to April 2012.
former headquarters in Port Louis. All the group's
insurance products are available in this facility. This Appointment at WAICA’s top
concept duly reflects the insurer’s new distribution management.
philosophy. The group has reported a turnover of 3
More than twenty contenders were running for the
billion MUR (102 million USD), that is an increase of
14% over one year, and a profit worth 203 million post of general manager at WAICA Re (West
MUR (6.9 million), down by 4.87% compared to 2009. African Insurance Companies Association's
Reinsurance Companies). It was Ezekiel Abiola
Namibia Ekundayo who was finally awarded the job. E.A.
Ekundayo, of Nigerian origin, began his career at
Flooding will be costly. WAPIC Insurance Company before joining Globe
The South African insurer Santam has revealed that Reinsurance in 1989.
the heavy rain affecting Namibia and South Africa
has caused significant damages to the policyholders Senegal
in both countries. In Namibia, damages to homes,
vehicles and farms will cost several million Namibian
Next to my tree.
dollars. No accurate loss estimate has been Allianz France has started a reforestation campaign
established. The company is expecting a significant in Senegal. The company is funding the planting of
increase of its loss experience because of bad 15 000 trees, inviting its collaborators to do likewise.
weather affecting the region since January 1st. Employees’ donations are collected through the
website reforesaction.com. Each employee can
Nigeria fund a minimum of five trees for an amount of 7.5
EUR (10 USD). The project is monitored by the
The insurance industry has lost 1.3 company Kinomé, in association with agronomists
billion USD because of the crisis. and Allianz Senegal teams. The insurer's objective is
According to some local media, the Nigerian to fund, with the support of its partners, the planting
insurance industry has lost nearly 200 billion NGN of 30 000 trees by June 30, 2011.
(1.3 billion USD) as a result to the world financial
crisis. This loss has slowed the development of Tanzania
insurance companies and affected assets held by
shareholders. The crisis has also hindered the entry The lack of insurance awareness is
of other companies because the new regulation harmful to the companies.
requires the establishment of at least four subsidiary
Market insurers are highly concentrated in urban
companies before a license can be granted. This
areas. This is due to the lack of awareness about the
new law was implemented in order to generate
usefulness of insurance. Julius Magabe, CEO of
250 000 jobs in the insurance business.
African Life Insurance, recommends that
Government is struggling to stabilize companies join hands to invest in awareness-raising
the market. seminars that would allow companies to grow
outside cities. Few companies have ventured into
Following the requirement for banks to part with
the countryside because of the poor image of
their non-banking activities (including insurance),
the legislature has committed significant resources insurance within the public there.
15
Atlas Magazine . N° 81 . May 2011
News
AFRICA
South Africa Zimbabwe
Sanlam is positioned on the markets of TA Holdings surviving thanks to its
Tanzania and Zambia. insurance activities.
The largest insurer in South Africa has settled in TA Holdings has managed to limit its losses in the
Tanzania and Zambia. These new markets are part industrial sector thanks to its satisfactory results in
of its growth strategy. They enable it to invest a insurance. Among the group’s companies,
portion of its capital surplus estimated at 4 billion Botswana Insurance has reported a pre-tax profit of
ZAR (601 million USD). Sanlam is South Africa's most 4.2 million USD. Zimnat Life has also managed to
capitalized insurer. The group is exploring expansion come out with a positive result of 432 000 USD. In
opportunities in other African countries, India and contrast, Zimnat Lion has posted 851 000 USD of
Great Britain. pre-tax losses, while Grande Re and Life Company
Lion of Uganda are slightly in the red.
‘‘Africa Re has established a leadership position as a regional
reinsurer committed to Africa, and now opened to selective markets
in the Middle East and Asia’’
African Reinsurance Corporation
THE AFRICAN REINSURER:
African Focus, International Standards
ALSO MANAGES THE:
• African Oil & Energy Pool • African Aviation Pool
AFRICA RE HOUSE
Plot 1679, Karimu Kotun Street, Victoria Island P.M.B. 12765 Lagos, Nigeria
Tel: (2341)2663323/2626660-2/4618828
Fax: (234 1) 2663282/2626664
e-mail: info@a frica-re.com
1
www .africa-re .com
S&P rating A-, AM Best A-
Regional Offices Subsidiary
33, Boulvard Moulay Africa Re Centre Rue Viviane 1 Cathedrale square 7, Elkhalily St., African Reinsurance Corporation
Youssef Hospital Road A24-Cocody Ambassade Mezzanine Level Plot No. 1149 (South Africa) Limited
Casablanca Upper Hill 20 BP 1623 Cnr Pope Hesseny Str & Masaken Sheraton
3rd Floor, North Wing Oakhurst
P O Box 62328 00200 Building
Morocco Abidjan 20 Georges Guibert Heliopolis, 11-13, St. Andrew's Rd
Nairobi Cote d'Ivoire Str, Port-Louis
Tel: (212) 22437700 Kenya Postal Code: 11361 Parktown 2193
2306154 Tel: (225) 22404480/1 Mauritius. Cairo, Egypt Houghton 2041
Tel: (254-20) Tel: (230) 2100795
Telex: 28079M 2730660/1/2/3
Telex 22345 AFRICACI Tel: 00 20 2 22685668 Johannesburg
Fax (225) 22404482 (230) 2131667 South Africa
Fax: (212) 22437729 Fax: (254-20) Fax 00 20 2 22685667
(230) 2131689 Tel: (27-11)4843764
email: casablanca@africa-re.com 2724896/2730608 e-mail: abidjan@africa-re.com e-mail: Cairo@africa-re.com
Fax: (230) 2102496 Fax: (27-11)4841001
e-mail: nairobi@africa-re.com e-mail: p.louis@africa-re.com Africa-re@starnet.com.eg
1 1 .
e-mail: africare@africa-re.co.za
16
Atlas Magazine . N° 81 . May 2011
News
ASIA
China in 2010. It was 2.3% 10 years ago. The sector
development is due to the diversity of product
The decline of insurance agents. offers and to the emergence of new distribution
In 2010, the contribution of insurance agents in the channels. Since the opening in 2000 of the sector to
collection of premiums fell by 5 points. From 37% in private insurers, the latter have sustained losses of
2009, it went down to 32% in 2010. Premiums 10.4 billion USD. One third of this deficit comes from
collected by the networks during the previous year life insurers, while two thirds are borne by non-life
amounted to 71.5 billion USD. This decrease was
insurers.
reported despite a 12% increase in the number of
agents. There were 3 298 000 insurance agents by
December 31, 2010. The average annual Philippines
commission perceived per agent has fallen by 14%
over the same period down to 2600 USD. The
The authorities are reviewing
recourse by companies to new distribution minimum capital requirement.
channels, including internet and telephone, has The regulatory authorities in the Philippines have
also restricted the activities of agents. revised upwards the minimum capital required to
Brokerage: a booming sector. operate as a non-life insurer. The minimum paid up
Unlike the business of insurance agents, brokerage is capital will increase from 125 million PHP (2.8 million
booming. Premiums drained by their activity show USD) to 175 million PHP (4 million USD) by 2012. It is
an increase of 28% compared to 2009 at 4.8 billion due to reach 250 million PHP (5.7 million USD) in
USD. Brokers’ income rose by 33% at almost 675 2015, the date scheduled for the opening of the
million USD while profits are jumping by 62% at 87 market to all insurers of the ASEAN region. This
million USD. decision has been taken to strengthen the local
Libya: the insurer "Sinosure" is companies and upgrade them for competition with
their Asian counterparts. The Philippines has
paying a heavy bill. currently 83 non-life insurance companies.
Chinese companies involved in Libyan projects
have already received more than 52 million USD in Thailand
compensation from credit insurer Sinosure. The latter
may end up disbursing almost 1 billion USD to Fraud stands as a greater threat than
Chinese companies compelled to give up the
capital level.
projects they undertook to achieve in Libya. Over
75 Chinese companies were operating in Libya Experts estimate that the new risk-based capital rule
where they participated in 50 major projects (solvency margin) of non-life insurance, which will
totalling 18.8 billion USD. come into force next September, will hardly affect
insurers. The new margin require insurers to have
Japan solvency capital standing at 20% of net written
premiums. All insurers, except three of them, have a
Fitch downgrades outlook for four ratio above the minimum required. Some
Japanese insurers. economists believe that fraud is a bigger threat to
The rating agency Fitch has downgraded the insurance companies in Thailand than the level of
outlook for four of the five Japanese insurers for capitalization. Over the past ten years, five insurers
which it has been issuing ratings. Mitsui Sumitomo, have gone bankrupt because of problems of fraud
Aioi Nissay Dowa, Sompo Japan and Nipponkoa and not due to inadequate capital.
have seen their outlook decline from stable to
negative. According to the agency’s analysts,
Taiwan
these insurers may be facing larger claims than Insurance forecasts remain excellent.
expected. Most insurers in the country have not so
Non-life insurers are poised to witness a steady
far released any estimates for the losses caused by
increase of their incomes in 2011 thanks to the
the earthquake and tsunami. The agency has
strong economic growth in the region in addition to
maintained its AA- rating with stable outlook for
Tokio Marine & Nichido Fire Insurance, highlighting the improved investment returns. Estimates are
its excellent level of capitalization. optimistic, despite a 3.7% marginal increase of
premiums in 2010 at 3.6 billion USD. The good
India economic performance will have a positive impact
on the non-life insurance sector thanks especially to
Penetration rate has more than an expected jump of motor insurance.
doubled in 10 years.
Insurance penetration rate was established at 5.2%
17
Atlas Magazine . N° 81 . May 2011
News
MAGHREB
Algeria technical result jumped by 22% at 489 million MAD
(58 million USD) compared to a 10.4% estimate last
Market turnover rose by 4% in 2010. October. Return on equity is established at 12.8%.
According to preliminary indications, the market Wafa Assurance invests in assistance
turnover rose by 4% in 2010 (GAM and MAATEC
excluded). The premiums collected amounted to insurance.
80.7 billion DZD (1.106 billion) compared to 77.6 Inter Mutuelle Assistance (IMA) held by Maif, Macif
billion DZD (1.101 billion USD) in 2009. The highest and Matmut has signed a partnership with Wafa
increases were achieved in life insurance +26% at Assurance designed to establish an insurance
90 million USD and in motor +12.1%. The latter company specializing in assistance. With a staff of
accounts for nearly 50% of the overall market one hundred people, the company will embark on
turnover. Non life insurance was down by 7.7% at a market with huge potential. A license application
336 million USD. The sector is still dominated by state has been filed at the department of insurance and
owned insurance companies which hold 75% of the social welfare (DAPS). Three assistance companies
market. are already operating in Morocco: Issaf Mondial
Assistance, AXA Assistance and Mondiale
The company 2A posts a turnover of 3 Assistance. IMA is targeting not only the local
billion DZD. market but also French-speaking Africa.
The Algérienne des Assurances (2A) has reported a
2010 turnover on a 16% rise at 3 billion DZD (41 Tunisia
million USD). Premiums are carried out through a
steadily-growing network. The 2A has renewed the
certification of its ISO 9001 management system for
all classes of business.
A new chart of accounts for insurance.
The new accounting system has been validated by
the national council of insurance (CNA) on March
10, 2011. It came into force since January 1, 2010. Nomination of a new chairman at
Insurance companies must now submit their STAR
balance sheets under the new standards. The old
The board of directors met in 10 May 2011 has
accounting system designed in the 1970s was no
longer in consistency with the economic appointed Lassaad Zarrouk chairman of the Société
environment. Tunisienne d’Assurance et de Réassurance, (STAR).
L. Zarrouk takes over Abdelkerim Merdassi.
Morocco The company has also announced that Sihem Kalai,
deputy manager, will now oversee all conventional
CNIA-SAADA did better than expected and facultative reinsurance operations.
in 2010.
Despite the deterioration of its life business,
CNIA-SAADA achieved a performance well above
the one announced when it got listed in October
2010. The premiums volume for 2010 has risen by
5.1% and amounted to 2.97 billion MAD (356 million
USD). The company’s market share is about 14%,
confirming its position as the country’s number four
insurer. CNIA-SAADA remains the leader in motor
insurance. The net profit was up by 7.7% at 303
million MAD (36 million USD), that is, 3 million MAD
(359 490 USD) more than previously forecast. The
18
Atlas Magazine . N° 81 . May 2011
News
MIDDLE EAST
Bahrain Qatar
BNH plans to expand in the Gulf. Development of captive insurance.
Bahrain National Holding (BNH) is intent on The regulatory authorities (QFC) have published two
establishing an insurance subsidiary company in reports outlining their interest in the development of
Abu Dhabi. BNH claims to be in the final stage of captive insurance in the country. These reports
talks with giant local investors. The new company is indicate a new management framework, improving
likely to start operations in June. BNH already holds conditions for captive companies wishing to settle in
30% of Bahrain Emirates Insurance, whose head Qatar.
office is located in
Abu Dhabi. NBH is Syria
also seeking license
to operate in Qatar. Insurers can purchase treasury bonds.
The company The Syrian government has allowed insurance
reported a net profit companies to hold treasury bonds . Previously, only
of 3.81 million BHD (10 local banks had access to them. The ministry of
million USD) in 2010, finance plans to sell 632.6 million USD of treasury
that is, an increase of bonds this year.
5% over one year and
a ROE of 9%. A new health insurer enters the market.
A presidential decree authorized the establishment
Jordan of a new health insurer. Called Cham Company for
Health Insurance and dotted with a capital of 10.54
Odyssey Re acquires 4.8% of Jordan million USD, the company will be owned by Syrian
Kuwait Bank. General Insurance, Syrian Holding Investment and
The reinsurer Odyssey Re, majority-owned by the the General Organization for Social Insurance.
Canadian Fairfax, has acquired 4.8 million shares of Another decree requires the coverage of all retirees
Jordan Kuwait Bank (JKB), in which KIPCO is the of the public and private sectors as well as military
reference shareholder. This amount represents 4.8% and civil workers by the new health insurance
of the bank’s capital. Fairfax had already expressed system.
its interest in Gulf Insurance Company (Kuwait) and
in the Jordanian insurer Arab Orient Insurance. In United Arab Emirates
September 2010, KIPCO and Fairfax agreed about
the entry of the latter in the capital of Gulf Insurance House will be partly listed.
Insurance Group (GIC) up to 39.2%. Following this Insurance House, based in Abu Dhabi, will get listed
agreement Fairfax became GIC’s second largest in May 2011. A share of 20% will be offered to the
shareholder behind KIPCO. public. A first listing was completed last March. The
capital of the company is estimated at 120 million
Lebanon AED (32.6 million USD). Finance House, the parent
company, holds 45% of it. Insurance House markets
Lutfi El-Zein Group acquires Saudi non-life insurance policies, including health. The
Oger’s shares in MedGulf. company has set a target of 9 million AED (2.4
million USD) of premiums by the end of December
The group Lutfi El-Zein 2011.
disbursed 400 million USD to
buy out Saudi Oger’s shares Lockton gains the status of chartered
in MedGulf Insurance. It is broker.
the largest acquisition Lockton brokerage office, established in Dubai, has
funded in Lebanon and become one of the few entities based outside
across the Middle East since Great Britain to win the status of chartered broker.
2007. Bank Audi and This distinction is awarded by the British insurance
Deutsche Bank were the institute Chartered Insurance Institute (CII). The
lead underwriters of this award confirms the broker’s merits, potential and
operation while 16 commitment to excellent professional practices.
Lebanese financial Lockton has been operating from Dubai for just a
institutions took part in the few months now.
financing.
19
Atlas Magazine . N° 81 . May 2011
News
MIDDLE EAST
Obligation to publish financial over one year at 179.33 million USD. In 2010,
statements for foreign companies. technical results accounted for nearly 23% of the
gross written premiums compared to 13.73% in 2009.
Emirati authorities now require that foreign The combined ratio is established at 92.52%.
insurance companies publish detailed accounts of
their results in at least two local widely-distributed Watania is going public.
newspapers . The accounts published must include
the company's financial position, financial National Takaful Company (Watania), filed 55% of
statement and audit report. A copy of the notice to its capital on Dubai’s stock exchange. This listing
figure must be submitted to the authorities 15 days represents 82.5 million AED (22.4 million USD) for a
before the date of publication. capital estimated at 150 million AED (40.8 million
USD). The company founders retain 45% of the
IGIH’s growth of premiums and remaining capital.
profits.
Net profits of International General Insurance
Holdings (IGIH) jumped by 90% at 17.2 million USD in
2010. Gross premiums income has grown by 17.3%
20
Atlas Magazine . N° 81 . May 2011
News
WORLD
Reinsurance rates will continue to remaining 51%. Unipol sells life insurance policies
decline. through the agencies network of Banca Nazionale
de Lavoro, a subsidiary of BNP Paribas. The French
According to Willis, reinsurance rates will continue to
group plans to acquire Unipol through its subsidiary
decrease despite the recent natural catastrophes
Cardif Assicurazioni for the sums of 325.2 million EUR
including Japan, Australia and New Zealand.
(473.7 million USD).
According to the broker, these events are not
sufficient to stop the cycle of falling prices. Factors
that could reverse the trend are the occurrence of
Turkey
other catastrophes, inflation and declining financial Dexia has considered seven
markets which may compel reinsurers to ameliorate
their underwriting results.
candidates for the takeover of its
Turkish life insurance subsidiary.
Germany
Following injunctions from the European
War risks covered by a German Commission, the Franco-Belgian bank Dexia is
consortium. withdrawing from its life insurance subsidiary Deniz
Emeklilik. The bank also disengages from the
The consortium named "German War Cover" will, distribution agreement for non-life and pension
henceforth, provide German ship owners with
insurance products within DenizBank. This move
covers against the risks of war and maritime
comes within the scope of the actions undertaken
piracy. Policies will be available in German and will
by Dexia with a view to selling its assets before
be subject to national law. It is the situation in the
Arab countries and the increasing acts of piracy October 31, 2012. Candidates were invited to
(+20.4% in 2010 and five times as many as in 1984) submit their bids before April 15. Seven major
that led to the creation of this pool. Its instigator is a insurers have been retained including Axa and
former underwriting agent from Bremen who Groupama. In 2009, Deniz Emeklilik posted a
specialized in marine insurance. The maximum premiums volume of 27 million EUR (38.6 million USD)
capacity offered will be 55 million EUR (80 million for a market share of 2.3%.
USD) per vessel. The names of companies
participating in the pool have not been disclosed so United States
far.
A series of tremendous tornadoes.
Hannover Re could lower its targets
for 2011. More than 600 tornadoes have swept across the
United States in April, killing over 350 people and
While many of its competitors have already revised
destroying over 10 000 buildings. The deadliest
their 2011 estimates downwards, Hannover Re’s
incident took place on April 27 and 28. In 24 hours,
chief financial officer does not rule out the
312 tornadoes had lashed seven states and killed
likelihood of proceeding likewise in the coming
weeks. The German reinsurer has announced it will 340 people. According to the company Eqecat,
wait for the results of the first quarter before coming specialized in risk modeling, this series of tornadoes
to a decision. The group targeted 946 million USD of is likely to have caused two to five billion dollars of
net profits for the ongoing year before the damages.
occurrence of three major catastrophes. Hannover
Re has warned that the bill for the Japanese
catastrophe would amount to 364 million USD while
the New Zealand and Australian events would cost
about 728 million USD for the first quarter alone.
Italy
BNP Paribas is after a 51%
participation in Unipol.
BNP Paribas, the owner of 49% of the bank insurer
Unipol, has expressed its interest in buying the
21
Atlas Magazine . N° 81 . May 2011
Statistics
Morocco : written premiums in 2010
Figures in thousands USD
Premiums 2010 Premiums 2009 Growth Market shares
2009-2010
Non life insurance
Personal accident, health 326 748 335 042 -2.47% 12.47%
Workmen’s compensation 226 998 233 819 -2.91% 8.66%
Motor insurance 847 896 841 246 0.79% 32.35%
* Third party liability 748 610 738 890 1.31% 28.56%
* Guarantees other than the
99 286 102 356 -2.99% 3.79%
third party liability
General third party liability 54 908 54 182 1.33% 2.09%
Fire and natural events 123 740 120 275 2.88% 4.72%
Engineering insurance 36 480 33 784 7.98% 1.39%
Marine 84 632 88 325 -4.18% 3.23%
Miscellaneous 22 743 20 969 8.45% 0.87%
Assistance, credit, bond 83 799 81 205 3.19% 3.20%
Total non life 1 807 944 1 808 847 -0.04% 68.98%
Life and sinking fund insurance
Individual insurance 542 279 609 678 -11.05% 20.69%
Group insurance 213 029 194 895 9.30% 8.13%
Variable life insurance 34 479 43 778 -21.24% 1.31%
Total life 789 787 848 351 -6.90% 30.13%
Total life and non life 2 597 731 2 657 198 -2,23% 99.11%
Reinsurance acceptances 23 288 16 793 38.67% 0.89%
GRAND TOTAL 2 621 019 2 673 991 -1.98% 100.00%
Exchange rate as at 31/12/2009 : 1 MAD = 0.1277 ; as at 31/12/2010 : 1 MAD = 0.11983 USD.
Marine 3.23% Credit insurance (3) 3.20%
Miscellaneous(2)
Fire and natural ev ents
3.15%
4.72%
General third party
liability 2.09%
Life and sinking fund
30.13%
Motor 32.35%
Personal accident,
health (1) 21.13%
(1) including workmen’s compensation
(2) including engineering and reinsurance acceptances
(3) including assistance and bond insurance
22
Atlas Magazine . N° 81 . May 2011
Statistics
Ranking per company
Premiums 2010 Premiums 2009 Growth Premiums 2010 Premiums 2009 Market
in thousands in thousands 2009-2010 in thousands in thousands shares
MAD MAD USD USD
Wafa Assurance 4 498 505 4 297 827 4.66% 539 056 548 833 20.57%
RMA Watanya 4 448 486 4 206 138 5.76% 533 062 537 124 20.34%
Axa Assurance
2 984 522 3 061 168 -2.50% 357 635 390 911 13.64%
Maroc
Cnia Saada
2 973 735 2 830 045 5.08% 356 343 361 397 13.60%
Assurance
Sanad 1 217 912 1 193 533 2.04% 145 942 152 414 5.57%
Atlanta 1 189 194 1 131 740 5.08% 142 501 144 523 5.44%
Marocaine vie 918 903 853 064 7.72% 110 112 108 936 4.20%
Zurich 913 379 820 752 11.29% 109 450 104 810 4.17%
MCMA 747 664 753 265 -0.74% 89 593 96 192 3.42%
CAT 662 340 628 037 5.46% 79 368 80 200 3.03%
MAMDA 405 783 328 951 23.36% 48 625 42 007 1.85%
Isaaf Mondiale
297 519 283 459 4.96% 35 652 36 198 1.36%
Assistance
Maroc
313 737 275 434 13.91% 37 595 35 173 1.43%
Assistance
MATU 215 846 203 763 5.93% 25 865 26 021 0.99%
Euler Hermes
55 393 48 537 14.13% 6 638 6 198 0.25%
ACMAR
Axa Assistance
29 890 23 914 24.99% 3 582 3 054 0.14%
Maroc
TOTAL 21 872 808 20 939 627 4.46% 2 621 019 2 673 990 100.00%
Exchange rate as at 31/12/2009 : 1 MAD = 0.1277 ; as at 31/12/2010 : 1 MAD = 0.11983 USD.
23
Atlas Magazine . N° 81 . May 2011
Agenda
Zimbabwe Kenya
38th AIO Conference and General 1st Annual Africa insurance & reinsurance
Assembly conference (AIRC 2011)
From 21 to 26 May 2011, Elephant Hills Hotel and The 21 and 22 June 2011, Crowne Plaza, Nairobi,
Resort, Victoria Falls, Zimbabwe. Kenya.
Theme : « In pursuit of the Uninsured African» Theme : « Identifying risk management priorities in
Tel : 237-33-42-01-63 / 33-42-47-58 the Africa insurance industry »
Fax : 237-33-43-20-08 Contact : Margaret Karanja
Email : aio@camnet.cm Tel : + 254 20 221 8114
stella@africaninsurance.net Fax : + 254 20 221 8114
Website : www.african-insurance.org Email : maggy@aidembs.com / airc@aidembs.com
www.aio2011zimbabwe.com Website : www.aidembs.com
24
Atlas Magazine . N° 81 . May 2011
Reshuffles
Algeria Galateri di Genola had previously been chairman
of Telecom Italia.
Compagnie Centrale de Réassurance
Youssef Hamza, retrocession manager of Nigeria
Compagnie Centrale de Réassurance (CCR) retired WAICA Re
on May 1, 2011. Y. Hamza, who was hired in 1977, Kofi Duffour has been appointed chairman of the
had spent his professional career at CCR. He was Board of WAICA Re, a newly-established Nigerian
replaced by Wided Belhouchet, ex reinsurance reinsurer. Kofi Duffour, who has an experience of
manager at Alliance Assurances. over 20 years in the insurance industry, retains his
position as executive officer at the Ghanaian
Bahrain company Star Insurance Company.
Chartis
Kamal Kaabi was promoted chief underwriting
United Arab Emirates
officer of New Hampshire Insurance Company and AXA Gulf
Chartis Takaful- Enaya. Based in Bahrain, both Jérôme Droesch has been appointed chief executive
companies belong to Chartis Group. officer of AXA Gulf. J. Droesch in replacement of
Jean-Louis Laurent Josi, who had been nominated
Lebanon chief executive officer of AXA in Japan.
Assurex
Naji Habis has joined the company as business United Kingdom
development manager. N. Habis had previously Lloyd's
held several key positions in various Lebanese
Peter Levene, chairman for nine years of the
insurance companies.
famous London insurance market, will leave his post
Italy in October 2011. He will be succeeded by John
Nelson, who will retain his duties as head of
Generali Hammerson, a British property group specializing in
Gabriele Galateri di Genola has been nominated shopping centers in the United Kingdom and
chairman of Generali. He takes over Cesare France. Peter Levene will be able to focus on his
Geronzi, who had been forced to resign. Gabriele activities at NBNK, a British investment company.
25
Atlas Magazine . N° 81 . May 2011