STAR Insurance Leader in Tunisia Announces Strong Q2 2025 Results
The Tunisian insurance sector leader, STAR, has announced net premiums of 104,252 MTND for the second quarter of 2025, representing a 5.4% year-over-year increase. The Automobile segment maintained stability with premiums of 48,425 MTND. Growth was driven by the Other branches (+13.0% to 232,053 MTND) and Life (+9.2% to 15,769 MTND). Acquired premiums, which correspond to the proportion of premiums issued during the accounting period, grew by 5.6% to 119,372 MTND.
Strong Performance Since the Beginning of the Year
Since the start of the year, STAR's turnover has reached 252,670 MTND, up 7.4%. Improvements were recorded across all segments, particularly in Automobile (+4.8% to 118,745 MTND) and Life (+14.8% to 29,975 MTND). The development of individual Trik Esslama contracts, fleet contracts, and border insurance boosted automobile insurance. The Health branch also benefited from new business subscriptions and premium rate increases, resulting in a 10.7% premium growth. Similarly, the Transport branch saw significant growth due to the evolution of main policy emissions and new business in aviation insurance.
Diversification of Products and Improved Profitability
There is a progressive diversification of products commercialized by the insurance company, with an increasing number of Life and Other branch contracts. The Automobile segment's share of revenue increased to 46.9%, a 117-basis-point decrease compared to June 2024, indicating improved profitability for STAR.
Cessions Remain Stable
Cession amounts remained stable at 25,730 MTND, as the turnover of the Fire and Miscellaneous Risks branch, which transfers most of its risk to reinsurers, did not evolve.
Favorable Claims Experience
The first-half claims experience was benign, with indemnifications of 133,550 MTND, compared to 140,347 MTND during the same period in 2024. This trend is linked to the 7.5% decrease in Automobile branch indemnifications, thanks to a decline in material and bodily injury claims frequency. The decrease in reported claims during the first six months (310,533 vs. 331,381 last year) indicates a quiet second half of the year.
Investment Products Perform Well
STAR has generated investment income of 64,899 MTND since the beginning of the year, up 17.2% year-over-year. The company recorded a capital gain of 5,300 MTND from the sale of securities.
Strong Semestrial Performance Expected
The published figures confirm that STAR is on track to achieve a good semestrial result. The stock has yielded a 13.7% return since the beginning of the year, which is satisfactory considering the overall market performance.
