Tunis Re Announces 19.5% Increase in Net Profit for the First Half of 2024
Tunis Re, the Tunisian reinsurance company, has reported a net profit of 12,929 million Tunisian dinars (Mtnd) for the first half of 2024, representing a 19.5% increase compared to the same period last year.
Non-Life Segment Performs Well
The Non-Life segment has shown good technical profitability, with a technical result of 7,466 Mtnd as of June 30, 2024, compared to 6,842 Mtnd in the same period last year. The growth is attributed to the Re Takaful activity, which has improved its technical profitability, moving from a loss of -2,542 Mtnd in the first half of 2023 to a gain of 0,828 Mtnd for the same period in 2024. The ordinary activity has achieved a technical result of 6,637 Mtnd, down 29.3% compared to the same period last year. The ARD policy is the most profitable, with a technical result of 7,902 Mtnd, followed by Technical Risks (4,865 Mtnd).
Life Segment Also Sees Improvement
The Life segment has also achieved a technical gain of 0,060 Mtnd, following a loss of -0,661 Mtnd in the first half of 2023. Once again, the Re Takaful activity has made a difference, with a surplus of 0,172 Mtnd, while the ordinary activity remains deficitary (-0,112 Mtnd), although it has significantly reduced its losses.
Global Performance Remains Strong
Despite a challenging economic context and high claims frequency, particularly affecting facultative acceptances, Tunis Re has maintained its performance. The main losses on the local market concerned the SNDP and various deposits in Soliman, which cost Tunis Re 4,172 Mtnd and 4,060 Mtnd, respectively. On foreign markets, the Dubai storm was the main loss, costing 27,625 Mtnd. However, the retrocession policy has largely compensated for these losses, limiting the increase in the final bill.
Asset Management Performs Well
The asset management activity has reported a global latent gain of 53,819 Mtnd, providing a significant financial cushion for the company.
Market Reaction and Outlook
The market has remained calm in response to the published figures, with Tunis Re demonstrating excellent financial health. Its valuation offers a good entry point for those looking to invest in the insurance sector.
