According to the Association of Insurance Companies in Lebanon (ACAL), net profits of insurance companies in Lebanon reached US$ 111.4 million in 2011, up by 25.6% from a total of US$ 88.7 million recorded in 2010. Total assets of insurance companies amounted to US$ 3.4 billion at end-2011, up by 9.6% from US$ 3.1 billion at end-2010.
Shareholder’s equity totaled US$ 792.2 million at end-2011, rising by 8.5% from US$ 730.3 million at end-2010.
The life segment posted an 8.0% growth in written premiums to US$ 369.4 million in 2011 compared with US$ 342.1 million in 2010. It also reported a 10.2% increase in net investment income from US$ 58.1 million in 2010 to US$ 64.1 million in 2011. Claims payments passed to US$ 106.7 million in 2011 against US$ 76.9 million in 2010. The bottom line for the life insurance business reported an 18.5% growth from US$ 57.7 million in 2010 to US$ 68.3 million in 2011.
At the level of the fire segment, ACAL said that 2011 was a year with exceptionally high fire claims when compared with 2010. Overall premiums went up by 18.5% from US$ 63.4 million in 2010 to US$ 75.2 million in 2011, and net investment income edged up by 34.5% to US$ 3.7 million in 2011, thus boosting net profits by 3.2% from US$ 8.6 million in 2010 to US$ 8.9 million in 2011.
At the level of the motor business, even as claims settlements increased by 8.2% while premiums grew moderately at 4.9%, its net losses narrowed by 58.1% to US$ 3.1 million in 2011 compared to US$ 7.4 million in 2010. The position of – US$ 25.8 million in unearned premiums reserves improved by 49.7% in 2011 when compared with 2010.
At the level of the medical segment, the rates of increase in written and net premiums in the medical business outpaced claims growth by 2.2% and 1.5% in 2011 when compared with 2010 results. Net investment income increased by 6.7% and non-insurance revenues more than doubled in the P&L of medical insurance. The net income after tax improved 63% to US$ 19.4 million in 2011, making it the second highest profit of any business line after life insurance.
Lebanon This Week – Bank Audi Research
26 November
