The Annual Report on Insurance Activity presents a comprehensive view of the resilience and dynamics that characterized the sector throughout 2022. This document plays a crucial role as a channel of communication with the insurance market and the general public, providing an analysis of the evolution of indicators and the performance of the insurance sector in the country.
In the period under review, the Mozambican economy demonstrated resilience, registering a remarkable Gross Domestic Product (GDP) growth of 4.4%, representing an increase of 2.1 percentage points compared to the same period last year. This progress was driven by solid performance in the agricultural and services sectors, benefiting from higher agricultural productivity and a return to full mobility after challenges posed by the pandemic.
Increased external demand and favorable prices for key export products, such as coal and aluminum, provided additional support for the economic recovery. Even in the face of global instability resulting from the Russian invasion of Ukraine, Mozambique managed to mitigate the impacts, thanks to tight trade ties and high prices for the country’s export products.
The overall production of insurance companies in 2022 grew by 3.8%, with the insurance market proving resilient in the face of the country’s economic climate, in which inflation reached its peak of the last five years with the global increase in fuel and food prices.
The growth in the insurance sector’s overall production was sustained by the evolution of Gross Premiums Written (GPEs) in the Life segment, which grew significantly, standing at 25.9% after having shown a decrease in production of 3.8% in 2021. On the other hand, the Non-Life segment grew by 0.9%. The financial and equity situation of the insurance companies showed a reduction in assets of 5.5%, totaling 43.322.6 million Meticais, the same scenario occurred in liabilities and equity, which also showed decreases of 6.3% and 3.9%, respectively.
However, the overall technical result was positive, reaching 1,414.3 million Meticais, reflecting a significant increase compared to the same period last year.
The solvency margin coverage ratio for insurance business stood at 353.9%, indicating a reduction of 30.1 percentage points compared to 2021. Despite the reduction, the market’s solvency level remained adequate. In 2022, the complementary pension funds showed a negative financial performance of approximately 1,364.0 million Meticais, which can be justified by the increase in pension fund expenditure of around 2,830 million Meticais.
The report is structured in six chapters, beginning with a presentation of the macroeconomic situation. Subsequent chapters cover the structure and evolution of the insurance sector, reinsurance, mediation activity, management of complementary pension funds and analysis of consumer complaints. ISSM, IP reiterates its commitment to transparency and impartiality in the supervision of the insurance sector in Mozambique, thus contributing to a safe and reliable environment for all stakeholders.
In 2022, the insurance sector showed resilience by recording nominal growth of 3.8%. This increase is especially significant considering the challenging economic environment the country faced during the period under review. A crucial indicator of the sector’s financial health is the ratio between total investments representing technical provisions, which reached 17,674.1 million Meticais, and technical provisions for the period, totaling 16,280.9 million Meticais.
Esta relação revela uma suficiência de 1,393.1 milhões de Meticais para a representação adequada das provisões técnicas, destacando a gestão sólida e prudente dos recursos do sector Apesar de uma ligeira redução na taxa de cobertura da margem de solvência, que se situou em 353.9%, representando uma diminuição de 30.1 pontos percentuais em relação a 2021, é relevante salientar que o nível de solvabilidade do mercado segurador permaneceu adequado.
Este indicador é crucial para garantir a capacidade do sector em cumprir suas obrigações financeiras. O resultado líquido do exercício da actividade de seguros foi positivo, alcançando um lucro de 2,147.9 milhões de Meticais. Este desempenho sólido foi impulsionado pelo excelente desempenho das contas técnicas nos segmentos Vida e Não Vida. Contudo, é importante destacar que os fundos de pensões complementares apresentaram um desempenho financeiro negativo, registando uma perda de aproximadamente 1,364.0 milhões de Meticais.
Este resultado pode ser atribuído, em parte, ao aumento das despesas dos fundos de pensões, que totalizaram 2,830 milhões de Meticais. Diante deste cenário, o ISSM, IP, reafirma o compromisso de continuar a monitorar o desempenho do sector e implementar acções estratégicas, visando preservar a estabilidade e solidez do mercado segurador, contribuindo, assim, para a robustez do sector financeiro como um todo. Este compromisso reflecte o papel crucial do ISSM IP na promoção de um ambiente seguro e confiável para os consumidores e investidores no mercado segurador.
