Egypt: 7 insurers to pump in fresh capital of more than US$45 mln
Source: Middle East Insurance Review | Sep 2015
Seven insurance companies, from the life and non-life sectors, are preparing to inject EGP356 million (US$45.5 million) in additional capital during the current fiscal year ending 30 June 2016. The new funds will raise the insurers’ combined capital from around EGP1.95 billion at present to EGP2.3 billion.
The companies are Misr Life Insurance, Mohandes Insurance, Egyptian Saudi Insurance House, Royal Insurance, Arab Misr Insurance, Wethaq for Takaful Insurance and Suez Canal Insurance, reported Al Mal News.
State-owned Misr Life Insurance is making the biggest capital increase of EGP250 million, taking its capital to EGP1.25 billion. It is followed by Mohandes Insurance with an increase of EGP25 million to EGP100 million. The other insurers are injecting funds ranging from EGP11 million to EGP20 million each.
The capital injections are being made to support business growth, including investments and the establishment of new branches.
For instance, Misr Life Insurance, which is the largest life insurer in the country, has announced that it is targeting to raise its market share to 42-43% in the current financial year which began on 1 July, compared to 40% achieved in the 2014/15 fiscal year. Mohandes Insurance has said that it plans to undertake insurance activities in new areas like aviation and oil.
EGP1 = US$0.13