Investment and Solvency Margin in Algerian Insurance Companies: An Analytical Study for the Period 2013-2022

Abstract

This study aims to analyze the investments of Algerian insurance companies and their solvency margin during the period 2013-2022. The focus is on the legal and regulatory frameworks affecting investment decisions within these companies. The importance of the study lies in understanding how insurance companies allocate their resources and manage risks to achieve high returns and enhance financial solvency.

A combination of descriptive and analytical methods was employed in this study, involving the collection of financial data and annual reports issued by the Ministry of Finance.

The study found that the volume of investments has continuously developed over the period, increasing from approximately 200 billion DZD in 2013 to more than 391 billion DZD in 2022. The most preferred investment channel is government securities, as the Algerian legislator has set a minimum threshold of 50%. However, the contribution of these investments to national investment remains very weak, not exceeding 5% throughout the study period. Furthermore, all Algerian insurance companies comply with the minimum solvency margin, whether based on technical reserves or on issued premiums throughout the study years.