Insurance companies in Morocco made record profits in 2025 as higher investment returns and growing demand for insurance pushed the sector to its strongest performance in a decade. The sector made a combined net profit of 5.3 billion dirhams ($580 million), up 21.4% from a year earlier, according to the Committee for the Coordination and Monitoring of Systemic Risks (CCSRS).
Total insurance premiums reached 63.2 billion dirhams ($6.9 billion), an increase of 7.5%. Life insurance brought in 29.4 billion dirhams, or 46% of the market, while non-life insurance generated 33.7 billion dirhams, accounting for the remaining 54%.
The committee said investment income was the biggest reason profits increased. The sector’s return on equity rose to 11.1%, the highest level in 10 years.
Life insurance continued to grow, helped mainly by savings products. Premiums from savings contracts rose by 8.9%.
Traditional savings policies remained the biggest part of the life insurance market, generating 23.5 billion dirhams. Unit-linked insurance products, which invest customers’ money in financial markets, recorded the fastest growth. Premiums from these products jumped 43.8% in 2025 as the Casablanca Stock Exchange rallied.
Growth continued into 2026. The Insurance and Social Security Supervisory Authority (ACAPS) said unit-linked premiums surged by 385.9% during the first quarter.
Motor insurance remained the largest non-life business, generating 16.1 billion dirhams, almost half of all non-life premiums.
Insurance linked to construction and engineering projects rose by 74.9% as major infrastructure works gathered pace ahead of the 2030 FIFA World Cup. Health insurance premiums reached 6 billion dirhams as more people and businesses bought private medical cover.
Insurance companies also remained major investors in the economy.
Their investment portfolios grew to 232.7 billion dirhams by the end of 2025. Nearly half of the money was invested in government bonds, while 43% was invested in shares listed on the Casablanca Stock Exchange. Real estate accounted for 6% of investments, with cash and other assets making up the remaining 4%.
Strong stock market gains pushed insurers’ unrealised investment profits to a record 62.5 billion dirhams, equal to 23.8% of invested assets.
The sector’s solvency ratio, which measures insurers’ ability to pay future claims, rose to a record 409.4%, up 54.7 percentage points from a year earlier.
The CCSRS said stress tests showed insurance companies could still cope with severe economic shocks, including droughts and sharp falls in stock markets.
Takaful, or Islamic insurance, also continued to expand. Premiums rose by 49.5% to 141.9 million dirhams in 2025, although the segment remains small.
ACAPS is also encouraging insurers to expand digital services and offer more insurance products online, including low-cost policies for farmers and lower-income households.
The committee said public pension schemes still face structural financial problems despite the insurance sector’s strong results.
It said a comprehensive reform based on separate public and private systems “remains essential” to reduce unfunded liabilities and secure the long-term future of pension funds.
Economic growth accelerated to 4.9% in 2025 from 4.4% a year earlier, helped by good weather and stronger activity outside agriculture.
Bank Al Maghrib expects growth to reach 5.2% in 2026 before slowing to 3.1% in 2027, assuming an average cereal harvest.
Inflation fell to 0.8% in 2025 from 0.9% in 2024. The central bank expects it to rise to 1.5% in 2026 and 2.1% in 2027.
The CCSRS is chaired by the Governor of Bank Al Maghrib and includes the Moroccan Capital Market Authority (AMMC), ACAPS and the Ministry of Economy and Finance.
