Economic Research | Lebanon This Week | Lebanon This Week 553 | Net profits of health insurance providers down 27% to $15.6m in 2017, claims down 2% to $329m | Lebanon | Byblos Bank

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Byblos Bank

Lebanon This Week 553

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Net profits of health insurance providers down 27% to $15.6m in 2017, claims down 2% to $329m

Figures released by the Insurance Control Commission show that the aggregate net profits of insurance companies active in the health insurance branch in Lebanon reached $15.6m in 2017, constituting a decline of 27% from $21.3m in 2016. The medical insurance segment posted a net profit margin of 3.5% in 2017 compared to 4.6% in 2016, and relative to a profit margin of 11% for the insurance sector. Health insurance covered 936,252 persons in 2017 through various medical plans that 36 health insurers offered in the market.

Also, gross written premiums from the health insurance branch decreased by 1.1% to $454.4m in 2017, and accounted for 44.4% of non-life premiums and 30% of the insurance sector's aggregate premiums. The "group" health segment's written premiums reached $255.1m and accounted for 56.1% of the medical branch's aggregate premiums, while those of the "individual" health segment totaled $199.4m and accounted for 43.9% of the total. The medical insurance market is heavily concentrated, as the top five companies in the "group" health segment underwrote 64.8% of premiums for groups, while the top five insurers in the "individual" health segment underwrote 57% of health premiums for individuals in 2017. Overall, MEDGULF led all insurers with $67.4m in medical premiums in 2017 and accounted for 14.8% of the branch's aggregate premiums, followed by Bankers with $54.9m (12.1%), Continental Trust with $47.1m (10.4%), AXA Middle East with $43.7m (9.6%) and Allianz SNA with $41.9m (9.2%).

Further, paid claims totaled $329.1m in 2017, constituting a decline of 1.8% from $335.3m in 2016. Gross claims paid from the "group" segment reached $216.2m and accounted for 65.7% of aggregate health claims in 2017, while those of the "individual" segment amounted to $112.9m and represented 34.3% of the total last year. The sector paid 1,481,161 claims in 2017, constituting a rise of 15.6% from 1,281,319 claims in 2016.
 
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