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Accueil Message of the Chairman

Message of the Chairman

The global reinsurance industry achieved positive results in 2016, despite a 50% increase in insured losses from natural disasters. These results, coupled with a continuing abundance of traditional reinsurance’s capacity and financial markets instruments, helped to maintain the situation of Soft Market in the Reinsurance market.

In Algeria, the total premium income of the insurance market at the end of 2016 is nearly DZD 131 billion against DZD 128 billion in 2015, i.e. 2% growth. This is nearly the same progress level registered in 2015 over 2014. This pace of growth reflects the current context of the national economy, affected by the fall of oil prices and, consequently, foreign revenues of the country.

In terms of reinsurance, the ceded premiums of the overall Algerian market, estimated for 2016, is up by 6% compared to 2015, passing from DZD 34.7 billion in 2015 to DZD 36.7 billion in 2016. Despite a 7.37% growth of its gross written premiums, CCR’s market share fell by one point, from 67% in 2015 to 66% in 2016.

CCR premiums’ growth in 2016 is mainly due to an increase in its company's domestic acceptances, which remain predominant with a share of 89.4% of its total premium income, but also due to a continuing progress of the international acceptances, which represents a share of 10.6%. The share of international acceptances rose by 2.2 points, compared to 2015 (8.4%).

Besides, the share of compulsory cession in the overall premium income of CCR passed from 65% in 2015 to 61% in 2016, and consequently, the non-compulsory cession grow from 35% in 2015 to 39% in 2016.

As part of its commercial activity, CCR continued to support its clients and partners by offering them reinsurance solutions that fitted their needs, and by enhancing the quality of services provided. Therefore, CCR continued to implement a training and technical assistance program for its ceding companies.

In terms of financial activity, the overall financial investments and equity investments increased by 3.5% in 2016, generating an increase of 25% in financial income. It should be mentioned that CCR subscribed for DZD 4 billion to the bonds for Economic Growth issued by the government in 2016.

As a consequence, the premium income growth combined with a prudent and controlled underwriting policy, boosted by a prudent investment strategy, pooled with optimized operating costs, has enabled CCR to improve its net profit for the year

Lastly, CCR managed to maintain for the year 2016 its rating at B+ with a stable outlook, attributed by the rating agency AM Best, reflecting its financial strength and its technical performance.

Chairman and general manager

Hadj Mohamed SEBA

 

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