The insurance market of the FANAF zone in 2010

Despite a gloomy economic context, the African insurance market achieved a remarkable growth in 2010. The written premiums for the entire continent have attained 66 billion USD compared to 57 billion USD in 2009, that is, an approximate 16% progression. The share of the African market in the world premiums volume has also witnessed an improvement going from 1.21% in 2009 to 1.54% in 2010. The FANAF zone which comprises 16 African countries has followed the continental trend with premiums growth of about 11%.

It is during the meeting for the 16th annual conference of the FANAF zone markets held in Lomé (Togo) on November 28, 2011 that the figures of the 13 countries have been disclosed.

As a reminder, FANAF is present in 25 countries including: South Africa, Algeria, Benin, Burkina Faso, Burundi, Cameroon, Central African Republic, Congo Brazzaville, Côte d’Ivoire, Gabon, Ghana, Guinea Conakry, Kenya, Madagascar, Mali, Morocco, Mauritania, Nigeria, Niger, Democratic Republic of Congo, Rwanda, Senegal, Chad, Togo and Tunisia.

Global turnover on the rise

The global turnover of the 13 countries gathered in Lomé (1) amounts to 703 879 million FCFA (1 451 million USD) in 2010, compared to 636 324 million FCFA (1 418 million USD) in 2009, that is, a 10.61% increase. Four countries account for 70.5% of the premiums: Côte d’Ivoire (27.83%), Cameroon (18.28%), Senegal (12.51%) and Gabon (11.91%).

It is Rwanda which has reported the highest annual growth. In this market, life and non-life premiums increased by nearly 35% attaining 20 891 million FCFA (43 million USD) in 2010. This growth is accounted for by the improved business environment in this country.

Togo, Côte d’Ivoire, Gabon and Mali are also reporting a two-digit growth. In 2010, only two countries, Congo Brazzaville and Chad, regressed in comparison with 2009.

Breakdown of life and non life premiums: 2009-2010
 2009 premiums in 000 'FCFA2010 premiums in 000' FCFA2009/2010 evolution2009 premiums in 000' USD2010 premiums in 000' USD2010 shares
Non life
469 848 725510 132 5878.5%1 047 2931 051 89372.47%
Life
166 475 743193 746 59016.38%371 074399 50627.53%
Total
636 324 468 703 879 177 10.61% 1 418 367 1 451 399 100%
1 Benin, Burkina Faso, Cameroon, Central African Republic, Congo Brazzaville, Côte d’Ivoire, Gabon, Mali, Niger, Rwanda, Senegal, Chad and Togo.

Non-life insurance

Almost 73% of the written premiums are accounted for by non-life insurance. This class of business prevails in this region with market shares reaching up to 97% in Central African Republic, 91% in Chad and 90% in Congo Brazzaville.

The non-life premiums of 510 132 million FCFA (1 051 million USD) grew by 8.5% in 2010 with Rwanda reporting the most remarkable growth (+46.16%) while Congo Brazzaville reported a decrease above 15% of its non-life premiums.

Life insurance

Despite a considerable 16.38% growth in 2010, the life insurance market remains under-exploited.

The turnover reported in 2010 amounted to 193 746 million FCFA (399 million USD). The sector remains dominated by Côte d’Ivoire, Cameroon and Senegal with respective market shares of 42.6%, 16% and 10.2%.

In terms of growth rate, Congo Brazzaville (+112%) and Central African Republic (+107%) have posted the highest progressions.

Breakdown of life and non life premiums per country of the FANAF zone
 2009 premiums in 000' FCFA2010 premiums in 000' FCFA2009/10 growth2009 premiums in 000' USD2010 premiums in 000' USD2010 shares
Côte d'Ivoire
174 614 191195 893 73012.18%389 215403 93327.83%
Cameroon
118 139 517128 644 1738.89%263 333265 26418.28%
Senegal
80 645 74888 017 1099.14%179 759181 49112.51%
Gabon
75 219 23783 840 15211.46%167 664172 87811.91%
Burkina Faso
29 649 90736 835 18524.23%66 09075 9545.23%
Benin
31 303 47933 475 6656.93%69 77569 0274.75%
Congo
36 893 32933 159 290-10.12%82 23568 3744.71%
Togo
24 770 64229 213 50917.93%55 21460 2384.15%
Mali
20 692 58923 435 85513.25%46 12448 3253.33%
Rwanda
15 487 58820 891 30334.98%34 52243 0782.97%
Niger
17 178 08018 576 4348.14%38 29038 3052.64%
Chad
8 733 6108 628 767-1.20%19 46717 7931.23%
CAR*
2 996 5513 268 0059.05%6 6796 7390.46%
Total
636 324 468 703 879 177 10.61% 1 418 396 1 451 399 100%
* Central African Republic
Exchange rate
FCFA/USD as at 31/12
2009
2010
0.002229
0.002062
 
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