Casablanca – Morocco’s insurance and reinsurance sector continued its upward trajectory during the first quarter of 2025, with both premium income and investment assets showing positive performance. According to recent figures published by the Insurance and Social Welfare Supervisory Authority (ACAPS), total premiums collected during Q1 2025 reached approximately $1.88 billion, marking a 5.5% increase compared to the same period in 2024.
Life and non-life branches both contribute to growth
The growth was shared across both major branches of the sector. Life insurance premiums rose by 8.7% year-on-year, totaling nearly $619 million. This rise was largely driven by strong demand for savings products, especially those linked to investment funds (unit-linked policies), which saw an exceptional 68.2% surge. Traditional savings in Moroccan dirhams also remained solid, increasing by 6.9% and contributing around $473 million to the Life segment. Meanwhile, life insurance policies covering death saw a smaller growth of 2.3%, suggesting modest but stable interest in basic protection coverage.
On the other hand, Non-Life insurance generated approximately $1.26 billion in premiums during the same period, reflecting a 3.9% increase. The most significant contributors to this growth were professional risk segments and social impact coverage. Insurance against workplace accidents and occupational illness rose by 8.3%, reaching roughly $149 million. Additionally, the segment covering catastrophic events—still relatively new and mandatory—grew by 12.6%, collecting close to $26.6 million in premiums.
The automotive segment remained the dominant component within Non-Life insurance, accounting for over $547 million in premiums, up 4.7% from the previous year.
Payouts and operational costs on the rise
While revenues showed healthy growth, insurance companies also faced rising obligations in the form of claims and expenses. Payouts during the first quarter reached $1.03 billion, an increase of 6.9% compared to Q1 2024. Of this, about $422 million was related to Life insurance claims, while $608 million was paid out for Non-Life policies.
Operational and acquisition expenses were also up by 6.9%, reaching approximately $330 million. This reflects the ongoing efforts by companies to maintain customer service quality and expand their market outreach while balancing administrative costs.
Investment assets: A foundation for stability
Beyond premium growth, the insurance sector continues to reinforce its financial sustainability through steady investment strategies. At the end of March 2025, total investment assets under management stood at approximately $22.96 billion, a 1.3% increase from late 2024.
The asset allocation remained conservative and diverse:
- 48% of investments were in fixed-income securities,
- 43% in equities,
- 6% in real estate, and
- 3% in other instruments.
Equity investments saw a 1.4% increase, totaling $9.79 billion, while holdings in mutual funds (OPCVMs) rose 3.3%, reflecting the sector’s desire for balanced portfolio returns. However, real estate investments slightly declined by 0.3%, settling at $1.32 billion.
Notably, unit-linked investment products also experienced a 9.4% rise, aligning with the growth in related life insurance policies. In addition, non-redeemable deposits—used for financial protection and reserve buildup—climbed by 15.8%, signaling stronger risk management by insurers.
Outlook: Resilience amid economic headwinds
The solid Q1 performance underlines the resilience of Morocco’s insurance market, even as the broader economy faces global uncertainties. The parallel rise in premiums, claims, and investment volumes indicates a maturing sector that is increasingly integrated into the financial well-being of Moroccan households and businesses.
As insurance coverage gradually extends to underserved populations and newer product lines gain traction, the industry appears well-positioned for continued growth throughout 2025 and beyond.
