Impacted by the effects of containment and the economic slowdown, Wafa Assurance recorded poor performance during the second quarter of 2020. Thus, its overall turnover fell by -12.5% in the first half of 2020, compared to at the same period of 2019.
In its press release published Monday, August 10 on the Casablanca Stock Exchange, Wafa Assurance, leader of the sector in Morocco, explains that the decline in its turnover concerns both the Life activity and the Non-Life activity, which are down by – 15.8% and -10.5% respectively. As of June 30, 2020, the overall half-year turnover amounted to MAD 4,697 million (431 million euros), up 0.8%, the decrease in turnover for the 2nd quarter linked to the effects of the Covid-19 pandemic neutralizing the growth observed in the 1st quarter of 2020 (+ 10.6%).
At balance sheet level, net reinsurance technical provisions stand at MAD 33.5 billion (€ 3.07 billion) and investments allocated to insurance operations come out, in net book value, to 33.5 billion. 7 billion DH (3.09 billion euros). The establishment also indicated that “the poor performance of the financial markets and the cancellation or suspension of dividend payments combined with the economic slowdown which is putting sectors of the company’s clients in difficulty, have had a significant impact on results”.
According to forecasts, the net income for the first half of the year will drop significantly compared to the net income for the first half of 2019. This takes into account these elements which impact the technical indicators and the financial result. If market conditions continue through the end of the year, 2020 net income is also expected to drop significantly. However, the company continues to have solid fundamentals to meet its commitments, despite the various unfavorable impacts that the health and economic crisis could generate.