Aro company: strong enough to be insured against the crisis?

Aro is Madagascar’s first insurance company, less due to its seniority than to its 54% share of the market. Its central executive officer, Patrick Andriambahiny, got a satisfying economic balance sheet in this crisis period. “Aro has an established financial solidity, with a 149 billions of ariary high solvency margin, or thirteen times more than the required amount” he explained. In spite of the crisis, the company collected a 55,6milliards of ariary high turnover in 2009, minus 1,7 billions of ariary compared to the year 2008.  

And yet, the year 2009 began as badly as never before for insurance companies. Aro was, however, able to support its customers who underwent damages during the popular uprising and the consequent depredations of January 26th. The amends had a plus 193% increase and reached 79,4 billions of ariary as only amounted to 27,1 billions of ariary in 2008. Aro did not drop below the red line for so much in 2009 in spite of a minus 30% and minus 3 ,01 billions of ariary compared to the previous year.  

In 2010, only 1% of all Madagascans has insurance, mostly related to cars, corporations and various societies. “The household’s weak spending power” is, according to the Aro company, one of the main hurdles to the general public trend. “The insurance culture is not yet part of the Malagasy education”, noticed Patrick Andriambahiny. People must be convinced that an insurance is necessary and compulsory, and that contributing a little bit could turn into a significant win”. He described the Malagasy law is a wee too loose. “A tenant abroad is compelled to subscribe to a fire insurance, here it is an exception “, argued Aro’s CEO.  

“The Aro company is today just as so strong thanks to its prudent management policy”, announced Patrick Andriambahiny. According to him, the priority is to secure the money delivered by customers. The company exclusively invests in juicy and low risk sectors. “We are implying the good family father’s management”, concluded the executive officer. In consideration of the current sector’s evolution, Aro announced the incoming publication of a business roadmap for the next 10 or 15 years.  

The Aro insurance company’s 35th anniversary is equally that of is nationalization, the state still has 73% share of the 7 billions of ariary large company. As starting its first paces as “Agence de la Préservatrice”, a French society, then as “Regional Delegation of the Indian Ocean”, the company in itself is now more than 75 years old.  Its name “Aro”, meaning “protection” in Malagasy was from scratch an acronym of “Assurance Reassurance Omnibranches “.