Insurance

 

Alliance Assurances was established in December 2004 by a consortium of Algerian investors with an initial capital of AD500m (€4.1m). However, Alliance Assurances only started effective operations in 2006. In 2007 revenue increased by 178% compared to the previous year. The sharp rise in revenue was due to the launch of a commercial development programme, which led to the creation of Algeria Touring Assistance. With an optimised communication policy Alliance reached second position in the Algerian market in 2008.

In 2009 Alliance Assurance created its subsidiary Orafina, which is dedicated to the development of enterprise resource planning and designed to become a software and IT services company. In 2010 IRIS, a software package, developed by Orafina, was launched. Also in 2010, the company extended the number of branch offices to 200.

In the same year, an initial public offering (IPO) was made to increase the share capital of the company such that it increased to AD800m (€6.6m) and then to AD2.2bn (€18.2m). In 2011 Alliance Assurances became the first private company listed on the Algiers Stock Market through an IPO that was supported by a liquidity contract signed with Crédit Populaire d’Algérie. Also in 2011, the company deployed its strategic plan “New Alliance 2015”.

The company formalised its strategic plan for renewed company growth by creating a system of internal committees in 2012. In 2015 the company’s turnover was AD4.4bn (€36.4m), which represents an increase of 0.11% compared to 2014, while net income increased by 2.15%, reaching AD363m (€3m). The net return on equity was 13%. This new-found profitability allowed Alliance Assurances to get out of debt and to increase its stockholders’ equity by 5%, compared to the previous year.

Recent Results

The performance of the company in the first half of 2016 amounts to approximately AD2.6bn (€21.5m), or an increase of 2.39% over the first half of 2015. Turnover increased by 2.4%, a growth of AD59.6m (€493,000) over the same period in 2014. The net income for the first semester of 2016 was AD157.1m (€1.3m). In terms of innovation, Alliance Insurances proceeded to the launch eight new packages offering coverage for professional activity, housing and household goods.

In terms of disaster management, the claims settlement rate continues to improve thanks to a total revision of the process in 2014 and modernisation of technology that allowed for improvement in the first half of 2016. The cadence of disaster’s settlement of the exercise is about 76.5%, with more than three quarters of customers having said their disasters claims during the 2016 exercise were indemnified.

Distribution Of Dividends

The ordinary general meeting of shareholders of Alliance Asurance was held June 5, 2016 and it was decided by the company’s shareholders to distribute a dividend of 35 dinars per share as of June 16, 2016.

Development Strategy

The company objectives for development in the medium term are based on the development of multiple distribution channels, especially for life products, while a network of brokers will be relaunched under a new framework that will provide updated hiring criteria and provide rewards based on sales performance. Alliance Assurances is deploying its strategy to be the Algerian insurance leader through its development programme, New Alliance 2015, launched in 2011. The company’s ambition behind this programme is to make insurance simpler and easier to all customer by focusing on two key customer segments: individuals and professionals. The company will also focus on launching communications and advertising campaigns. The target of this new programme is to triple the size of its sales network and double the company’s turnover to AD6.7bn (€55.4m) by 2017.

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The Report: Algeria 2016

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