Africa-Press – Mozambique. The Institute of Insurance Supervision of Mozambique (ISSM) recently presented its annual report on the activity of 19 insurance companies operating in Mozambique.
Data available on the institution’s official website reveal that, in terms of net income for the year, insurance companies billed 2.8 billion meticais, showing a certain redress of the effects of the Covid-19 pandemic, taking into consideration that, in 2019, the sector raised only 1.5 billion meticais.
Regarding the Complementary Pension Funds, the ISSM mentions that the volume of contributions stood at just over 1 billion meticais, showing an increase of 20.1% compared to 2019, with the financial performance of the respective funds reaching the amount of 740.1 million meticais, a reduction of 47% compared to 2019.
Quoted in the note, ISSM Executive Director Mércio Sitoe associates the growth of overall production in the insurance sector with the evolution of Gross Written Premium (GWP) in the two market segments, ‘Life’ and ‘Non-Life’, which grew by 16% and 15.4% respectively.
In addition to these data, ‘Carta’ consulted the ISSM 2020 report. The document adds that the financial and equity situation of insurance companies registered a growth in the sector’s assets, having reached 47.7 billion meticais, a growth of 25.4% , compared to the previous year, with liabilities also having increased by 18.9% in relation to 2019. Equity increased by 37.4% relative to the previous year, reaching 18.2 billion meticais.
The ISSM also found that the accident rate for the ‘Life’ component, which focuses essentially on risk in the event of death, with the accident rate in 2020 at around 18.6 %, a reduction of 11.7 percentage points compared to the same period in 2019. In contrast, the ‘Non-Life’ component recorded a loss ratio of 51.9%.
But not all went well in the insurance sector in 2020. The report mentions that the coverage rate of the solvency margin of the insurance activity stood at 419.5%, against 484.3% in 2019, a reduction of 64.8 percentage points.
By
Evaristo Chilingue
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