The Lebanese insurance market: 2009-2013

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The digital revolution [3]

Magazine date:

Jun 2015

The Lebanese insurance market features

Regulatory authority: Ministry of Economy and Trade, Insurance Control Commission (ICC)
Life and non life premiums (2013): 1 416 million USD
Insurance density (2013): 329.3 USD
Penetration rate (2013): 3.08%

The Lebanese insurance market strucutre in 2013

Market actors	Nombre
Life and non life insurance companies	51
Brokerage companies	306
Insurance agents	1370
Other insurance intermediaries	131

Identity

Area: 10 452 km²
Population (2013): 4.3 million inhabitants
GDP (2013): 46 billion USD
GDP/capita (2013): 10 698 USD
GDP growth rate (2013): 1.5
Inflation rate (2013): 5.4%
Main economic sectors: Breeding and agricultural products, tourism, mining, textile industry, food industry

Main cities

((per number of inhabitants in 2012)

Beirut (capital): 1 900 000
Tripoli: 722 572
Tyre: 234 000

The Lebanese insurance market: Turnover’s evolution per class of business (2009-2013)

in USD

	2009	2010	2011	2012	2013	2013 shares
Non life insurance
Fire	63 490 886	69 216 938	78 743 651	88 123 055	98 823 285	7%
Marine	27 573 987	32 696 780	35 378 911	43 834 142	44 732 779	3.2%
Motor	284 494 893	311 502 647	316 966 274	319 044 492	326 869 126	23.1%
Health	256 595 774	296 644 049	340 700 948	364 661 599	406 829 609	28.7%
Accident ⁽¹⁾	48 287 149	59 611 136	67 011 777	72 673 548	72 581 080	5.1%
Miscellaneous risks⁽²⁾	24 461 746	24 544 567	22 448 096	22 093 369	25 819 350	1.8%
Others ⁽³⁾	22 411 970	21 564 540	24 080 817	28 377 747	31 656 272	2.2%
Total non life	727 316 405	815 780 657	885 330 474	938 807 952	1 007 311 501	71.1%
Life insurance
Life	85 194 602	108 555 648	116 597 389	133 477 863	156 970 243	11.1%
Savings	118 261 229	113 738 723	147 496 928	129 907 033	134 021 694	9.5%
Capitalisation	93 402 414	113 747 491	100 231 382	116 910 363	117 695 201	8.3%
Total life	296 858 245	336 041 862	364 325 699	380 295 259	408 687 138	28.9%
Grand total	1 024 174 650	1 151 822 519	1 249 656 173	1 319 103 211	1 415 998 639	100%

⁽¹⁾ including workmen’s compensation and personal accident
⁽²⁾ including theft class of business
⁽³⁾ including third party liability, engineering and credit insurance

The Lebanese insurance market: Evolution of paid losses per life and non life class of business (2009-2013)

in USD

	2009	2010	2011	2012	2013	2013 shares
Non life insurance
Fire	14 135 440	15 522 410	55 128 157	26 863 274	40 715 932	5.5%
Marine	8 957 539	22 119 328	14 378 844	8 861 493	9 075 539	1.2%
Motor	126 241 725	151 235 168	158 150 433	174 460 476	180 786 618	24.6%
Health	177 168 361	202 103 282	228 329 639	255 305 180	285 244 850	38.9%
Accident ⁽¹⁾	17 482 173	22 313 701	24 546 003	28 170 177	29 808 585	4.1%
Miscellaneous risks ⁽²⁾	5 215 028	8 629 460	5 456 568	4 926 012	4 149 470	0.5%
Others ⁽³⁾	5 867 236	4 770 519	7 312 859	6 799 766	7 488 344	1%
Total non life	355 067 502	426 693 868	493 302 503	505 386 378	557 269 338	75.9%
Life insurance
Life	17 399 344	19 868 256	18 739 858	21 133 923	21 978 011	3%
Savings	88 771 951	37 229 763	44 172 340	59 432 192	58 066 916	7.9%
Capitalisation	-	19 761 380	52 198 155	76 713 703	96 530 425	13.2%
Total life	106 171 295	76 859 399	115 110 353	157 279 818	176 575 352	24.1%
Grand total	461 238 797	503 553 267	608 412 856	662 666 196	733 844 690	100%

⁽¹⁾ including workmen’s compensation and personal accident
⁽²⁾ including theft class of business
⁽³⁾ including third party liability, engineering and credit insurance

The Lebanese insurance market: turnover’s evolution per life and non life company (2009-2013)

in USD

	2009	2010	2011	2012	2013	2012/2013 evolution	2013 shares
Medgulf	122 562 232	118 194 922	124 532 257	119 753 017	135 022 897	12.8%	9.5%
Allianz SNA	85 135 340	97 938 240	100 052 844	103 680 042	110 697 510	6.8%	7.8%
ALICO - Metlife	87 157 010	93 403 615	97 106 733	101 441 058	103 345 939	1.9%	7.3%
AXA M.E.	49 859 323	56 851 122	78 165 628	85 126 763	102 144 026	20%	7.2%
Arope	80 185 707	90 735 223	90 957 338	92 904 837	98 007 459	5.5%	6.9%
Bankers	70 675 930	80 894 405	83 838 877	89 789 347	95 945 826	6.9%	6.8%
LIA (Libano-Arabe)	57 807 395	56 117 705	81 357 222	81 224 644	88 475 836	8.9%	6.2%
Libano-Suisse	43 998 131	54 148 024	59 222 304	68 785 031	68 811 587	0.04%	4.9%
Fidelity	36 728 066	44 316 636	51 705 402	54 333 645	60 946 787	12.2%	4.3%
Bancassurance	34 766 669	37 437 463	42 160 201	47 035 497	54 154 614	15.1%	3.8%
Adonis (ADIR)	47 059 390	40 604 675	44 701 283	50 480 684	53 505 176	6%	3.8%
Al-Mashrek	23 171 456	27 717 415	31 107 727	35 257 005	39 451 264	11.9%	2.8%
Assurex	24 602 089	26 358 762	28 841 171	29 720 584	31 134 950	4.8%	2.2%
Arabia	13 164 911	40 663 229	28 114 283	31 046 559	25 188 848	-18.9%	1.8%
Security	19 036 802	23 055 678	28 763 451	30 189 674	24 663 069	-18.3%	1.7%
ALIG	14 422 670	17 278 984	16 210 952	17 802 619	22 984 966	29.1%	1.6%
Cumberland	20 552 868	22 375 160	22 280 269	21 163 437	22 436 391	6%	1.6%
Fajr el-khaleej	11 570 322	11 275 837	15 055 744	16 718 306	20 895 183	25%	1.5%
Capital	12 328 763	15 849 774	15 698 009	17 721 440	20 829 457	17.5%	1.5%
Crédit Libanais	22 048 556	24 414 033	19 798 785	18 289 736	20 412 529	11.6%	1.5%
Total ⁽¹⁾	875 833 630	979 630 902	1 059 670 480	1 112 463 925	1 199 054 314	7.8%	84.7%
Rest of the market ⁽²⁾	148 341 020	172 191 617	189 985 693	206 639 286	216 944 325	5%	7.3%
Grand total	1 024 174 650	1 151 822 519	1 249 656 173	1 319 103 211	1 415 998 639	7.3%	100%

⁽¹⁾ total of the top twenty companies
⁽²⁾ 31 companies

The Lebanese insurance market: Incurred losses net of reinsurance in 2013

in USD

	Fire	Marine	Motor	Health	Others	Total non life
Medgulf	433 633	55 302	13 718 046	83 218 182	3 134 009	100 559 172
Allianz SNA	300 827	84 703	7 295 185	17 819 760	1 916 811	27 417 286
ALICO - Metlife	-	-	-	5 464 670	2 728 517	8 193 187
AXA M.E.	452 218	1 008 510	9 196 017	28 907 292	1 770 249	41 334 286
Arope	584 637	55 701	18 399 965	1 724 373	1 707 335	22 472 011
Bankers	- 44 354	51 797	12 196 364	23 282 929	1 286 065	36 772 801
LIA (Libano-Arabe)	15 866	69 124	9 566 337	1 627 028	2 092 081	13 370 436
Libano-Suisse	128 750	70 186	13 818 879	10 650 954	1 218 175	25 886 944
Fidelity	110 934	57 424	9 244 652	17 740 607	1 937 176	29 090 793
Bancassurance ⁽¹⁾	-	-	-	-	-	-
Adonis (ADIR)	214 727	33 975	8 038 535	222 691	868 669	9 378 597
Al-Mashrek	72 571	482 583	12 040 070	5 477 274	2 228 174	20 300 672
Assurex	282 374	203 965	5 977 165	2 427 743	1 115 218	10 006 465
Arabia	127 128	- 17 020	13 116 928	2 928 759	3 508 905	19 664 700
Security	90 798	94 271	10 088 846	3 135 755	1 042 246	14 451 916
ALIG	190 564	790 701	3 429 347	2 630 285	808 417	7 849 314
Cumberland	3 676	- 189	2 112 223	3 925 537	442 849	6 484 096
Fajr el-khaleej	- 1 310	23 683	4 924 692	1 052 320	430 634	6 430 019
Capital	505 341	336 253	4 795 151	536 302	1 292 014	7 465 061
Crédit Libanais	-120 945	- 2 628	2 242 051	122 904	- 17 179	2 223 203
Total ⁽²⁾	3 347 435	3 398 341	160 200 453	212 894 365	29 510 365	409 350 959
Rest of the market ⁽³⁾	799 418	2 209 003	39 056 786	21 403 698	7 695 124	71 164 029
Grand total	4 146 853	5 607 344	199 257 239	234 298 063	37 205 489	480 514 988

⁽¹⁾ underwrites exclusively life insurance
⁽²⁾ total of the top twenty companies
⁽³⁾ 31 companies

The Lebanese insurance market: Earned premiums net of reinsurance in 2013

in USD

	Fire	Marine	Motor	Health	Others	Total non life
Medgulf	2 266 505	483 496	17 613 300	86 205 005	5 333 981	111 902 287
Allianz SNA	3 037 688	410 255	13 433 393	24 044 269	5 784 770	46 710 375
ALICO - Metlife	-	-	-	8 077 343	16 093 283	24 170 626
AXA M.E.	4 927 296	3 021 409	13 867 739	44 046 906	4 945 792	70 809 142
Arope	2 242 771	894 500	34 129 843	4 185 323	2 795 996	44 248 433
Bankers	3 667 302	944 169	21 684 777	40 178 662	4 187 777	70 662 687
LIA (Libano-Arabe)	2 826 984	1 355 782	13 356 008	4 231 533	7 806 863	29 577 170
Libano-Suisse	1 310 082	717 636	25 781 690	18 910 653	2 706 905	49 426 966
Fidelity	1 208 348	720 372	16 070 067	26 738 118	5 660 445	50 397 350
Bancassurance ⁽¹⁾	-	-	-	-	-	-
Adonis (ADIR)	1 797 838	343 116	11 676 247	552 350	1 512 051	15 881 602
Al-Mashrek	1 772 417	446 539	16 789 072	7 762 484	4 509 604	31 280 116
Assurex	1 931 080	996 553	15 244 699	5 604 586	2 817 198	26 594 116
Arabia	2 733 354	552 685	14 771 164	3 690 269	3 158 198	24 905 670
Security	628 991	621 980	14 370 031	5 273 500	1 426 172	22 320 674
ALIG	979 961	1 680 048	6 518 359	5 837 065	1 524 162	16 539 595
Cumberland	350 461	40 522	3 083 765	8 491 075	722 997	12 688 820
Fajr el-khaleej	1 727 286	684 136	6 645 147	1 786 079	1 973 008	12 815 656
Capital	569 684	362 316	8 314 022	2 087 804	1 212 981	12 546 807
Crédit Libanais	695 433	66 315	4 385 118	120 426	757 845	6 025 137
Total ⁽²⁾	34 673 481	14 341 829	257 734 441	297 823 450	74 930 028	679 503 229
Rest of the market ⁽²⁾	9 932 617	11 537 917	59 356 361	34 692 406	19 379 647	134 898 948
Grand total	44 606 098	25 879 746	317 090 802	332 515 856	94 309 675	814 402 177

⁽¹⁾ underwrites exclusively life insurance
⁽²⁾ total of the top twenty companies
⁽³⁾ 31 companies

The Lebanese insurance market: Loss ratios net of reinsurance in 2013

	Fire	Marine	Motor	Health	Others	Total non life
Medgulf	19.1%	11.4%	77.9%	96.5%	58.8%	89.9%
Allianz SNA	9.9%	20.6%	54.3%	74.1%	33.1%	58.7%
ALICO - Metlife	-	-	-	67.7%	17%	33.9%
AXA M.E.	9.2%	33.4%	66.3%	65.6%	35.8%	58.4%
Arope	26.1%	6.2%	53.9%	41.2%	61.1%	50.8%
Bankers	1.2%	5.5%	56.2%	57.9%	30.7%	52%
LIA (Libano-Arabe)	0.6%	5.1%	71.6%	38.5%	26.8%	45.2%
Libano-Suisse	9.8%	9.8%	53.6%	56.3%	45%	52.4%
Fidelity	9.2%	8%	57.5%	66.3%	34.2%	57.7%
Bancassurance ⁽¹⁾	-	-	-	-	-	-
Adonis (ADIR)	11.9%	9.9%	68.8%	40.3%	57.4%	59.1%
Al-Mashrek	4.1%	108.1%	71.7%	70.6%	49.4%	64.9%
Assurex	14.6%	20.5%	39.2%	43.3%	39.6%	37.6%
Arabia	4.7%	-3.1%	88.8%	79.4%	111.1%	79%
Security	14.4%	15.2%	70.2%	59.5%	73.1%	64.7%
ALIG	19.4%	47.1%	52.6%	45.1%	53%	47.5%
Cumberland	1%	0.5%	68.5%	46.2%	61.3%	51.1%
Fajr el-khaleej	29.3%	49.2%	72.2%	30%	65.5%	58.2%
Capital	0.2%	6.5%	59.2%	50.4%	35.5%	51.2%
Crédit Libanais	17.4%	4%	51.1%	101.2%	2.3%	36.9%
Total ⁽²⁾	9.7%	23.7%	62.2%	71.5%	39.4%	60.2%
Rest of the market⁽³⁾	8%	19.1%	65.8%	61.7%	39.7%	52.8%
Grand total	9.3%	21.7%	62.8%	70.5%	39.5%	59%

⁽¹⁾ underwrites exclusively life insurance
⁽²⁾ total of the top twenty companies
⁽³⁾ 31 companies Source: Sigma, Ministry of Economy and Trade, Insurance Control Commission (ICC)