GAT Assurances, which is not listed on the stock exchange and is only classified as a company with a public call for savings, ended the financial year on a high note.
GAT Assurances’ performance was mainly characterized by a 12% increase in premiums written and accepted, reaching 263.8 million dinars (MD). This development affects all lines of business, particularly motor, which remains in surplus.
Claims paid by GAT Assurances increased by 15.9%. They totaled 151.6 MD, of which 50.8% related to motor, 39.4% to health, 2.1% to fire, 1.7% to marine, 2.1% to liability, 1.1% to special risks, 0.6% to other risks, 0.1% to industrial accidents and 2.3% to acceptances.
Combined ratio a sign of good profitability and a profit of 27.3 MD
The combined ratio (ratio of claims and administration expenses to total premiums collected) remains below 100%, falling from 91.0% in 2022 to 82.7% in 2023. This significant improvement in the ratio reflects the good underwriting profitability of GAT Assurances’ insurance business.
The technical result for the financial year 2023 is a surplus of 27.3 MD, an increase of 20.6%. The underwriting and financial balances showed a surplus of 106 MD (+52.6%) and 18.0 MD (+35.3%) respectively.
The net result for 2023 is a profit of 25.2 MD, an increase of 3.9%, reflecting a return on equity of over 20%.
Financial management, the second pillar of GAT ASSURANCES’ business, is characterized by a 5.0% increase in the stock of investments, i.e. 395.6 MD in 2023 compared with 376.9 MD in 2022, and a 13.8% increase in investment income, i.e. 26.4 MD in 2023 compared with 23.2 MD in 2022. Technical provisions decrease by 1.3%, from 316.4 MD in 2022 to 312.3 MD in 2023.
Reinsurance has a significant leverage effect, strengthening the company’s position by providing underwriting capacity. The cession rate reaches 17.7% in 2023 compared to 16.6% in 2022.
The reinsurance balance in 2022 was 35.1 million dinars in favor of reinsurers, compared to 11.4 million dinars in 2022. In 2023, ceded premiums were approximately 46.3 million dinars and the reinsurers’ share of technical liabilities was 44.1 million dinars.
Prudential ratios in line with standards
Prudential ratios are in line with regulatory standards and requirements: in 2023, the representation ratio reached 111.3% and the solvency ratio was 232.5%. GAT Assurances’ equity, including the profit for 2023, has improved by 9.9%, rising from 119.3 MD in 2022 to 131.1 MD in 2023.
Human capital remained stable, with 222 employees at the end of 2023, compared with 224 at the same time last year. The management ratio was 93.7% compared to 92.9% at the end of 2022.
The 2023 financial year was marked by the departure of 13 people, compared with the recruitment of 11. Staff turnover was 5.4% and the average age was 42. Staff costs increased by 8.6% in 2023, mainly due to statutory salary increases and promotions granted during the year.
The number of GAT ASSURANCES branches in 2023 was 131, including 11 new openings in 2023 and 5 new direct offices.
The number of future general agents has been increased by 16 new general agents in 2023, bringing the total to 26 at the end of the 2023 financial year.
Dividends paid to shareholders for the 2023 financial year totaled 13.7 MD, compared with 13.5 MD in the previous year.
