Impacted by the effects of the lockdown and the economic slowdown, Wafa Insurance recorded poor performance in the 2nd quarter of 2020. Thus, its overall turnover decreased by -12.5% in the first half of 2020, compared to the same period of 2019.
In its press release published on Monday, August 10 on the Casablanca Stock Exchange, Wafa Assurance, leader of the sector in Morocco, explains that the decline in its turnover concerns both the Life activity and the Non-Life activity, which fell by -15.8% and -10.5% respectively. At 30 June 2020, overall half-year revenue stood at 4697 million dirhams (€431 million), up 0.8%, with the decline in revenue in the 2nd quarter related to the effects of the Covid-19 pandemic neutralizing the increase observed in the 1st quarter of 2020 (+10.6%).

At the balance sheet level, the technical provisions net of reinsurance amounted to DH 33.5 billion (€3.07 billion) and investments allocated to insurance operations amounted to DH 33.7 billion (€3.09 billion) in net book value. The institution also indicated that "the underperformance of the financial markets and the cancellation or suspension of dividend payments combined with the economic slowdown that is putting the company's client sectors in difficulty, have had significant consequences on the results".

According to forecasts, the net result for the 1st half will decrease significantly compared to the net result for the 1st half of 2019. This takes into account these elements that impact the technical indicators and the financial result. If market conditions continue until the end of the year, the 2020 net result is also expected to decline significantly. However, the company continues to have solid fundamentals to meet its commitments, despite the various adverse impacts that the health and economic crisis could generate.