The Minister of Economy and Finance, Mr. Mohammed Boussaid, and the representatives of (MATU), signed Monday, February 17th , 2014 in Rabat, a financial assistance agreement in the form of a loan amounting to150 million dirhams. This interest-free loan repayable over 11 years is charged on the insurance solidarity fund pursuant to section 257 of the Insurance Code. It is clear that the MATU experienced an unbalanced financial situation that led the board to ask for the submission of a recovery plan.
This program was reviewed by the joint committee constituted by both the government representatives and representatives of the insurance sector and recommended approval of the recovery plan. This plan provides for significant measures likely to restore the balance of this mutual insurance company notably through:
- Redesigning its governance after changing the operation method of the Board of Directors into a Supervisory Board;
- Redesigning its management by establishing an effective internal control system and that is audited, operational reorganization, a review of its information system .....
- the restoration of core technology, thanks in particular to the tariff adjustment on areas recording deficits, the reallocation of its "active" portfolio;
- the availability of a loan to increase the capital base of the MATU and to protect the interests of its policyholders.
This loan will be locked into unavailable account in representation of its technical reserves.
It is noted that the MATU has already started the implementation of the recovery plan agreed in amending,namely its governance, setting up a new operational restructuration and providing clear procedures both at the subscription of insurance contracts and at claims settlement.
The Ministry of Economy and Finance welcomes the outcome of this process, crowned by the signature of this agreement which will allow a full deployment of the recovery plan, and thereby, anable the MATU to play a major role at the level of the insurance sector by maintaining the jobs being created while remaining a tool for the benefit of its policyholders and members.
Finally, the Department notes the important work done by the governance's bodies and management of the mutual structure and their adherence to this recovery plan.