Insurance company Emose warns that losses from protests in Mozambique are not covered

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Insurance company Emose warns that losses from protests in Mozambique are not covered

5:02 CAT | 17 Feb 2025

File photo: Noticias

Mozambican state owned insurance company Emose warned today that the losses caused by post-election demonstrations in the country are not covered by insurance policies, despite the “requests” it has received.

“In general, they are not covered,” said the chairman of the board of directors of Empresa Moçambicana de Seguros (Emose), Janfar Abdulai, although he admits that, occasionally, some companies have policies that include exceptions.

“It is important to mention that in light of the policy, demonstrations caused by political events are not covered”, said the administrator, who was speaking to journalists, in Maputo, on the sidelines of the 34th national meeting of managers and staff of that insurance company, one of the largest in the country, owned by the State.

The Confederation of Economic Associations of Mozambique (CTA) estimated on December 30 to Lusa that more than 500 companies were vandalized during post-election demonstrations in Mozambique, since October 21, and at least 12 thousand people were left without jobs.

At least 327 people died, including around two dozen minors, and around 750 were shot during the protests, according to the electoral platform Decide, a non-governmental organization that monitors the electoral processes.

These are demonstrations and strikes that have caused widespread destruction of public and private equipment, called by the then presidential candidate Venâncio Mondlane, who does not recognize the official results of the October 9 general elections.

Speaking at today’s Emose meeting, Janfar Abdulai stated that the current context of the insurance sector in Mozambique requires “a proactive, informed and strategically adjusted stance to market dynamics”.

“The past year has put us to the test, with complex challenges driven by socio-political and economic factors. However, we were able to respond with rigor and competence, ensuring the continuity of operations and strengthening the trust of our customers, partners and ‘stakeholders’. But let’s be clear: what got us here will not be enough to take us forward”, stated the chairman of the board of directors.

“The insurance sector is in constant transformation. Competition intensifies, regulatory requirements become more stringent and risks take on new configurations. Faced with this reality, we cannot just react. We must anticipate, plan with precision and execute efficiently”, he further pointed out.

Lusa previously reported that Emose reversed the losses of recent years (until 2022), recording profits in 2023 of 43.4 million meticais (65 thousand euros), despite losing market share and leadership.

According to Emose’s 2023 report and accounts, to which Lusa had access, the insurance company recorded losses of more than 1,193 million meticais (17.8 million euros) in 2021 and 52.5 million meticais in 2022 (784 thousand euros).

The issuance of gross premiums in Emose’s life insurance fell by 0.5% in 2023, to 3,208 million meticais (46.1 million euros), while in non-life insurance they fell by 0.4%, to 19,037 million meticais (274 million euros).

As a result, Emose’s share in the Mozambican insurance market fell by 3.6 percentage points, from 18 to 14.4% (in 2023), behind Hollard (16.5% share) and the Portuguese Fidelidade (14.8%).

The Mozambican State holds a 31% stake directly in Emose’s share capital and, through the State Participation Management Institute (IGEPE), another 39%. Other small shareholders also include the Emose Technical Managers and Workers Cooperative, with a 20% share.

The insurance market in Mozambique has 19 authorized companies and was led for more than 40 years by Emose, created two years after national independence through the nationalization and merger of the insurance companies Lusitânia, Tranquilidade de Moçambique and Nauticus.

Source: Lusa