Assurances Réassurances Omnibranches (ARO)

A genuine institution of the Big Island, ARO has dominated the Malagasy insurance market since its inception in 1975. The very name ARO which means protection, defense, everything that is designed to protect, is a symbol in itself. It channels two main ideas: independence and reinforcement of the Malagasy identity.

The insurer’s shareholding basis is a reflection of the history of the company owned by the state at 73.35% and by staff members who control 16.83% of the capital.

Despite the long socio-political crisis sustained by the country, ARO is a safe value and a company endowed with a notoriety that goes far beyond the Indian Ocean. The company’s professionalism is well recognized and appreciated all over Africa.

The implementation of the 2011-2020 Business Plan has allowed the company to draw up a coherent development framework that should lead ultimately to the separation of life and non life operations and to the overhaul of the group’s IT system. As for now, ARO continues to dominate the Malagasy market with 55% of market share. The 2013 performance was outstanding with a loss ratio of 41.7%, a combined ratio of 69.9% and a solvency margin of about 13 times higher than the minimum regulatory.

Herintsalama Rajaonarivelo Patrick Andriambahiny
ChairmanChief executive officer

ARO in 2013

Share capital
3 160 193 USD
Turnover
37 751 000 USD
Assets
192 151 225 USD
Shareholder’s equity
80 878 980 USD
Net result
3 690 000 USD
Loss ratio
41.7%
Management expenses ratio
28.2%
Combined ratio
69.9%
Distribution network
19 direct agencies, 5 general agents,
24 sub-agencies
Number of employees
382

Management

Chairman of the board
Herintsalama Rajaonarivelo
Chief executive officer
Patrick Andriambahiny
Development and projects Manager
Julien Andrianarisaona
Financial & HR Manager
Andry Rabaonarison
Technical Manager
Zafiarisoa Rakouth
Marketing Manager
Sylvie Ranoroharivelo
Inspector Manager
Mamy Ramiandrasoa
Life Department
Mahenina Ranaivo
Reinsurance Department
Johary Andrianarivelo

Shareholding

State
73.35%
Companies
9.62%
Staff
16.83%
Others
0.19%

Main technical highlights: 2009-2013

in thousands USD
 20092010201120122013
Gross written premiums
28 88029 20530 30032 81837 751
Direct written premiums
27 04827 56528 66030 92935 787
Net earned premiums
28 05226 39428 28631 11934 967
Net incurred losses
41 2058 67012 83217 39814 584
Management expenses (1)
10 6579 78610 96510 24710 658
Management expenses ratio (2)
36.9%33.5%36.2%31.2%28.2%
Net loss ratio
146.9%32.9%45.4%55.9%41.7%
Combined ratio
183.8%66.4%81.6%87.1%69.9%
Technical result
5 1933 7974 2694 7126 465
Net result
1 5642 6333 0023 2753 690
1 Management expenses = acquisition costs + administration costs + other products and operating expenses
2 Management expenses ratio = management expenses / gross written premiums

Evolution of premiums, losses and results

in thousands USD

Evolution of ratios 2009-2013

Gross written premiums per class of business: 2009-2013

in thousands USD
 200920102011201220132013 shares2012/2013 evolution
Motor
5 2404 6334 6133 7234 01810.6%7.9%
Fire
1 0289521 0485266051.6%15%
Liability (1)
4 6964 9064 6477 50213 83436.6%84.4%
Miscellaneous risks
4 6804 6394 6824 5275 23613.9%15.7%
Miscellaneous risks
3 1574 4754 1524 0268612.3%-78.6%
Aviation
2 4112 0512 4093 4743 1388.3%-9.7%
Marine
1 1541 0421 8191 2241 3923.7%13.8%
Total non life
22 366 22 698 23 370 25 002 29 084 77% 16.3%
Total life
4 682 4 867 5 290 5 927 6 703 17.8% 13.1%
Direct business
27 04827 56528 66030 92935 78794.8%15.7%
Acceptances
1 8321 6401 6401 8891 9645.2%4%
Grand total
28 88029 20530 30032 81837 751100%15%

Breakdown of gross written premiums per class of business in 2013

1 includes all classes of compulsory insurance

Incurred losses per class of business: 2009-2013

in thousands USD
 20092010201120122013
Motor
1 446-1362 3263 4501 783
Fire
2 946-1 1799357980
Liability (1)
2 1242 9412 6921 6151 982
Miscellaneous risks
26 077-1 492-1 0771 7854 403
Miscellaneous risks
993213254-5
Aviation
4141 396-1 0113144
Marine
1 052-781 27790-859
Total non life
35 053 1 473 4 248 7 382 8 328
Life
6 1527 1978 58410 0166 256
Grand total
41 2058 67012 83217 39814 584
1 includes all classes of compulsory insurance

Loss ratio per class of business: 2009-2013

 20092010201120122013
Motor
26.4%-2.8%52.8%82.8%45.2%
Fire
288.7%-129.7%0.9%46.7%163.5%
Liability (1)
46.9%62.0%58.6%19.1%15.4%
Miscellaneous risks
619.6%-32.6%-23.2%40.6%90.7%
Miscellaneous risks
21.3%0.6%0.7%1.6%-0.4%
Aviation
17.3%64.5%-45.0%1.0%1.3%
Marine
90.1%-7.8%76.4%8.6%-52.5%
Total non life
149.5% 6.8% 18.5% 29.3% 29.5%
Life
133.8%149.5%159.6%168.3%92.7%
Grand total
146.9%32.9%45.4%55.9%41.7%
1 includes all classes of compulsory insurance Sources: ARO’s website and annual reports
Exchange rate
MGA/TND as at 31/12
2009
2010
2011
2012
2013
0.0005189
0.0004765
0.26669
0.26698
0.26666

Assurances Réassurances Omnibranches (ARO)

Headquarters
Antsahavola Antananarivo - Madagascar PO Box 42
Tel
+261 20 22 201 54
Fax
+261 20 22 344 64
E-mail
antsahavola [at] aro [dot] mg (antsahavola [at] aro [dot] mg )
Website
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