STAR Insurance Leader in Tunisia Sees Strong Start to 2024
The Tunisian insurance sector leader, STAR, has had a strong start to 2024. Issued premiums have increased by 7.6% to 136,975 MTND as of the end of March 2024. This improvement has been seen in both the Non-Life (+7.7% to 125,315 MTND) and Life (+6.2% to 11,660 MTND) branches.
The Automobile policy has seen a 1.2% decrease due to a slowdown in frontier insurance subscriptions and a shift in the issuance of a large fleet. The Transport branch has also seen a 15.2% decrease in issued premiums due to a decline in the facultative segment.
Acquired premiums, which represent the proportion of issued premiums acquired during the accounting period, have totaled 100,979, an increase of 7.3% year-over-year. The Non-Life activity remains the largest contributor to this volume, with premiums of 89,263 MTND, half of which come from the Automobile branch. The Life insurance business has reported revenue of 11,716 MTND, an increase of 6.8% compared to the same period in 2023. The cession rate is consistent with the company's portfolio structure, standing at 10.9%.
Indemnities paid out have increased by 10.4% to 71,448 MTND, driven by a 12.1% increase in Automobile claims to 38,141 MTND. The trend is expected to remain stable in the coming months, as the number of reported Automobile claims during the first three months has remained virtually unchanged at 11,922 claims.
In terms of investment products, STAR has generated revenue of 21,362 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. Barring exceptionally high claims, the insurer is on track for a strong 2024.
