EUR 175.00 For Business Accounts Only

BMCE Capital Research Flash WAFA ASSURANCE 05 15 19

After a difficult year marked by a sharp increase in net claims of MAD 350m, mainly from the
automobile and peak risks, WAFA ASSURANCE's activity should recover in 2019 thanks in particular to
the measures to be implemented by the insurer, including the evolution towards personalized rates,
the implementation of restrictions in terms of compensation arrangements and the end of the
inclusion of certain free additional services in insurance contracts.
Despite the decline in its performance over the past two years, the company maintains its leading
position with a market share of 20.7% in 2018 (25.7% in Life and 15.9% in Non-Life) and has solid
fundamentals resulting in a very comfortable solvency margin of 314%, which should enable it to cope
with the application of Solvabilité Basée sur les Risques.
In terms of growth, WAFA ASSURANCE seems to want to adopt a new strategy for its expansion in
Africa, as evidenced by its latest operations in Cameroon. Indeed, the insurer, whose strategy of
internationalization has always manifested itself in greenfield locations, has just acquired stakes in
companies that are already operational, namely PRO ASSUR SA and PRO ASSUR VIE. These
operations should enable the company to optimize its costs and better manage the regulatory changes
experienced in the CIMA zone.
Given the strength of the insurer's fundamentals and pending the positive impact of the measures to
be implemented, we recommend that the stock be accumulated.