SONAR

SONAR is the sole insurance company of the CIMA zone and probably in a much larger area where the marriage of a newly-independent state with foreign shareholders and local insurers has not ended in an acrimonious divorce with all ensuing scenes.

Thirty years after their union, the state and the foreign shareholders are still sitting around the same table. It is true that the cards have been reshuffled somewhat, but in a very sensible manner, with the state of Burkina Faso progressively yielding its shares to some local investors.

André B. Bayala

Chairman

It is the stability of its shareholding and management that provided SONAR with solid grounds. Safe from drastic course changes, the company has managed to gather momentum in the long run and gain confidence among numerous partners including the AXA group, since it belongs to its international network as of April 1, 2000.

Being an important economic stakeholder of Burkina Faso, SONAR has, from the start, been a great insurance school where newly-established companies resort to draw their executive staff in order to consolidate their structures.

Key dates

• April 1^st 2000:
  SONAR becomes member of AXA Insurance Group's international network.
• December 1999:
  In conformity with CIMA's article 326, SONAR was subdivided into two entities:

  • SONAR IARD (Non life)
  • SONAR VIE (Life)
• February 24, 1994:
  SONAR is raised to the status of an insurance limited company
• 1978:
  Transfer to SONAR of the following portfolios:

  • Union des Assurances de Paris (UAP)
  • La Mutuelle du Mans Incendie
  • Les Assurances Générales de France (AGF)
  • La Mutuelle Générale Française Accidents (MGF Accidents)
• January 10, 1974:
  SONAR was set up, having as main shareholders the State (51%) and GFA (Groupement Français des Assurances)

SONAR non-life results: 2000-2005

in millions USD

	2000	2001	2002	2003	2004	2005
Gross written premiums	6.53	6.26	7. 77	10.48	10. 84	9.71
Written premiums net of reinsurance	5.07	4.33	5.52	7.30	7.41	6.64
Gross earned premiums	5.57	4.11	5.09	6.81	8.42	5.41
Gross incurred losses*	2.09	2. 30	2.71	3.05	4.56	2.60
Incurred losses net of reinsurance	1.86	1.56	2.15	2.27	3.25	2.02
Loss ratio	38%	56%	53%	45%	54%	48%
Management expenses	2.3	2.61	2.67	3.31	3.99	4.02
Technical result	0.12	0.40	0.26	1.28	0.64	1.62
Investment income	0.34	0.29	0.42	0.59	0.84	0.82
Net profit (after taxes)	0.16	0.47	0.63	0.89	0.43	0.58

* Paid losses + reserve variation of the outstanding losses

Turnover's evolution by class of business: 2000-2005

in millions USD

	2000	2001	2002	2003	2004	2005
Non life
Motor	4.16	3.37	4.00	5.34	5.05	4.86
Fire & miscellaneous accident	1.69	1.81	2.29	2.85	3.45	3.61
Marine	0.58	1.00	1.38	1.99	1.89	1.13
Others	0.10	0.08	0.10	0.30	0.45	0.11
Total non life	6.53	6.26	7.77	10.48	10.84	9.71
Life
Total life	1.04	1.11	1.62	2.32	2.58	2.38
Grand total	7.57	7.37	9.39	12.80	13.42	12.09

Turnover by class of business in 2005

Loss ratio: 2000-2005

Exchange rate XOF/USD as at 31/12	2000	2001	2002	2003	2004	2005
	0.00143	0.00135	0.00161	0.00191	0.00208	0.00179

Thanks: We thank SONAR for their kind assistance in the conception of this survey.