STAR Off to a Strong Start in 2025
After a successful 2024, STAR has begun 2025 on a high note. Issued premiums have reached 148,419 MTND, an 8.8% year-over-year increase. Non-Life activity remains the primary contributor to this volume, with premiums of 134,212 MTND, of which 52.4% come from the Automobile branch. Notably, this proportion has decreased by 480 basis points over the past two years, indicating a diversification effort into more profitable segments.
Life insurance has reported a turnover of 14,207 MTND, a 21.8% improvement compared to the same period in 2024, driven by the Temporary Death Collective Savings activity. The cession rate remains low, given the company's portfolio structure, at 11.0%.
In terms of acquired premiums, which correspond to the proportion of issued premiums acquired during the accounting period, they have increased by 7.2% to 101,075 MTND. This growth has been almost universal.
In Non-Life, this positive trend is driven by the Health branch, which has increased by 10.6% compared to the same period in 2024, due to the development of new business subscriptions and the revaluation of premium bases. The Automobile branch has also reported an increase, linked to the growth of individual contract subscriptions and fleets. The Transport branch has also seen an increase in turnover, driven by the growth of subscription-based policies.
Indemnities paid have decreased significantly by 15.9% to 59,915 MTND, thanks to the control of Automobile claims frequency, which has decreased by 14.3% to 32,686 MTND. This trend is unlikely to change in the coming months, as the number of reported claims by Automobile policyholders during the first quarter has decreased, from 11,922 in Q1 2024 to 10,271 this year. Similarly, the Health branch has reported a 17.3% year-over-year decrease in claim declarations.
In terms of investment products, STAR has generated revenue of 22,707 MTND since the beginning of the year. This financial strength, derived from a diverse portfolio of investments, provides the company with significant flexibility in achieving its profitability objectives. Moreover, a capital gain of 1,600 MTND has been announced by the insurer.
The double general assembly will be held tomorrow, with a key decision to be voted on: the split of the nominal value of 10 TND to 5 TND. Historically, the market appreciates this type of maneuver, although it has no real impact on valuation. Greater liquidity is expected for the shares of a very solid insurer.
