(The following statement was released by the rating agency)
May 30 - The insurance markets in the Maghreb region--Algeria, Morocco, and Tunisia--share long-term growth potential, in Standard & Poor’s opinion. Standard & Poor’s Ratings Services has today announced the publication of its report “Long-Term Growth Potential For Maghreb Insurers Increases The Need For Risk Management Under Tough Economic Conditions.”
“We think these markets are likely to advance on the back of mounting needs for life and savings products, and demand for personal lines of business, like home property and health, which remain either untapped or underdeveloped,” said Standard & Poor’s credit analyst Vittorio Sangiorgio.
In addition, developing infrastructure and government efforts to increase insurance penetration are likely to support premium volumes in the coming years.
Growth potential varies among the three markets, however, given their differing economic prospects, maturity, business mix, and comprehensiveness of distribution channels.
“We consider that challenging economic conditions, stiffening competition, and volatile investment markets accentuate the need for tightened risk management practices for those players who seek healthy long-term growth,” said Standard & Poor’s credit analyst Gwenaelle Gibert.