The insurance market of the FANAF zone in 2009
Evolution of premiums in Africa and the FANAF zone
| 2005 | 2006 | 2007 | 2008 | 2009 | 2008/09 growth | |
|---|---|---|---|---|---|---|
Africa | 42 718 | 49 874 | 53 294 | 52 829 | 49 287 | -6.70% |
FANAF zone* | 843 | 989 | 1266 | 1311 | 1416 | +8.00% |
FANAF zone market share | 1.97% | 1.98% | 2.37% | 2.48% | 2.87% | - |
The FANAF zone includes 16 countries: Benin, Burkina Faso, Burundi, Cameroon, Congo Brazzaville, Central African Republic, Côte d'Ivoire, Gabon, Guinea Conakry, Mali, Madagascar, Niger, Rwanda, Senegal, Chad and Togo. It totals 662 billion FCFA (1 416 million USD) of direct premiums in 2009, that is, nearly 3% of the African market shares.
Nearly 67% of these premiums are generated by four countries: Côte d'Ivoire (26%), Cameroon (18%), Senegal (12%) and Gabon (11%).
The FANAF zone reported premiums growth of 8% in 2009 while the entire continent has sustained a 6.7% decline in the written premiums during the same period.
All countries in the concerned area have posted a progression of their premiums. Some have even seen a double-digit growth like Chad with more than 40%, Congo Brazzaville with 37% or Niger with nearly 20%.
Breakdown of life and non life premiums: 2005-2009*
| 2005 | 2006 | 2007 | 2008 | 2009 | 2008/09 growth | |
|---|---|---|---|---|---|---|
Non life premiums | 657 | 756 | 960 | 967 | 1048 | 8.37% |
Life premiums | 186 | 233 | 306 | 344 | 368 | 6.97% |
Total | 843 | 989 | 1266 | 1311 | 1416 | 8.00% |
Almost 74% of the collected premiums are from non-life insurance, a segment that remains dominant in this region with market shares varying between 99% in Central Africa and 59% in Côte d'Ivoire. In 2009, the overall non-life premiums amounted to 1 048 million USD, compared to 967 million USD in 2008, that is, an increase of 8.37%.
Life insurance has posted premiums worth 368 million USD. It rose by 6.97% in 2009. Life turnover doubled between 2005 and 2009. Côte d'Ivoire, Cameroon and Senegal still dominate the life market with respective shares of 41%, 16% and 10%.
Breakdown of life and non life premiums per country*
| 2005 | 2006 | 2007 | 2008 | 2009 | 2008/09 growth | 2009 shares | |
|---|---|---|---|---|---|---|---|
Benin | 35.789 | 42.730 | 55.249 | 62.013 | 65.608 | 5.79% | 4.63% |
Burkina Faso | 34.769 | 38.720 | 55.029 | 54.725 | 62.711 | 14.59% | 4.43% |
Burundi | 8.243 | 10.065 | 11.473 | 11.594 | 13.110 | 13.06% | 0.93% |
Cameroon | 166.832 | 182.690 | 235.200 | 231.948 | 247.102 | 6.53% | 17.44% |
Central Africa | 3.143 | 3.653 | 5.221 | 5.938 | 6.414 | 8.01% | 0.45% |
Congo Brazzaville | 30.878 | 42.593 | 57.418 | 55.596 | 76.374 | 37.37% | 5.39% |
Côte d'Ivoire | 231.860 | 265.443 | 327.745 | 353.045 | 368.114 | 4.26% | 25.98% |
Gabon | 89.255 | 107.663 | 139.469 | 142.248 | 158.647 | 11.52% | 11.20% |
Guinea Conakry | 8.026 | 8.754 | 9.964 | 11.339 | 11.500 | 1.42% | 0.81% |
Madagascar | 27.276 | 29.409 | 34.846 | 33.579 | 34.056 | 1.42% | 2.40% |
Mali | 26.576 | 31.264 | 38.454 | 43.114 | 43.909 | 1.84% | 3.10% |
Niger | 18.766 | 22.865 | 29.196 | 30.283 | 36.273 | 19.78% | 2.56% |
Rwanda | 15.879 | 38.274 | 54.452 | 52.225 | 52.967 | 1.42% | 3.74% |
Senegal | 109.557 | 123.873 | 156.077 | 165.633 | 170.147 | 2.72% | 12.00% |
Chad | 9.696 | 10.210 | 15.277 | 13.150 | 18.492 | 42.62% | 1.31% |
Togo | 26.959 | 31.532 | 41.479 | 44.979 | 51.377 | 14.22% | 3.63% |
Total | 843.505 | 989.739 | 1266.547 | 1311.407 | 1416.800 | 8.00% | 100.00% |
Despite this steady evolution of life and non life turnover during the last five years, FANAF's weight in Africa remains poor. The sector has indeed a real growth potential in the region but it remains marginalized and hardly exploited.
The landscape is in fact dominated by a plethora of small and poorly capitalized companies. The FANAF zone alone has 153 companies battling over an extremely tight market, an overflow which is hindering the development and modernization of the sector.
Exchange rate FCFA/USD as at 31/12 | 2005 | 2006 | 2007 | 2008 | 2009 |
0.00179 | 0.00193 | 0.0022 | 0.00211 | 0.00214 |
