The financial performance of Misr Insurance Company's is sound, notes Fitch Ratings, with an annualised net income return on average equity (ROE) of 18% in 1H2026 and 12% in 2025.
Performance is driven by investment income, which totalled EGP6.2bn ($115.8m) in 1H2026 and EGP11.3bn in 2025, against underwriting results of EGP2bn and EGP1.6bn, respectively. The combined ratio was 95% in 1H2026 and 88% in 2025. Fitch said, “Performance should be viewed against Egypt's high, albeit moderating, inflation, which averaged about 14% in 1H2026 and 2025, so real returns are materially lower than nominal figures indicate.”
Ratings affirmed
Fitch has affirmed Misr Insurance's National Insurer Financial Strength (IFS) Rating at 'AAA(egy)'. The outlook is ‘Stable’.
The rating reflects Misr Insurance's leading position as the largest insurer in the Egyptian market, strong capitalisation and sound financial performance by local standards. The company is wholly owned by the Sovereign Fund of Egypt and exposed to Egyptian sovereign debt and other local assets, which drives its performance through high nominal yields.
Aside from financial performance, other drivers of Misr Insurance’s rating include:
Leading Domestic Insurer: Fitch assesses Misr Insurance's company profile as 'Most Favourable' relative to other Egyptian insurers, reflecting its leading competitive position, strong diversification and moderate business risk profile. Misr Insurance accounted for 41% of sector insurance revenue in 2025.
Its portfolio is well diversified by product and distribution channel, with key lines including fire, oil, gas and engineering, accident and health, motor, and marine, aviation and transportation insurance.
Misr Insurance writes business directly and through brokers and tied agents, supported by eight regional offices, more than 80 local branches and three overseas branches in Kuwait, Qatar and Dubai.
Asset Risk Reflects Operating Environment: Fitch views asset and investment risks as high, reflecting Egypt's challenging operating environment, with high, albeit moderating, inflation and a low-rated sovereign (B/Stable). The fixed-income portfolio comprises sovereign debt; cash is held mainly with local banks, and equities are predominantly Egyptian listed and unlisted companies. The risky assets ratio was 151% at end-1H2026. We nonetheless view its investment strategy as adequate and liquidity as strong, with liquid assets covering 519% of net loss reserves at end-1H26.
Strong Capitalisation; No Debt: Fitch views Misr Insurance's capitalisation as strong. The Prism model scored the company's capitalisation as 'Strong' at end-1H2026, end-2025 and end-2024, based on IFRS17 accounts. The regulatory solvency margin was very high at 30.7x at end-1H2026 and 14.4x at end-2025, and net leverage was low at 0.6x at both dates. Misr Insurance paid dividends of EGP6.7bn in 2025, equivalent to 89% of net income, but Fitch expects capitalisation to remain commensurate with the rating, given strong internal capital generation and substantial solvency headroom. Misr Insurance has no debt and no plans to issue any.