Egypt: Insurers posted higher premium income but lower net gains in FY2018
Source: Middle East Insurance Review | Jul 2019
Egypt’s insurance market posted total premiums of around EGP30bn ($1.8bn) for the fiscal year ended 30 June 2018 (FY2018), a growth rate of 25% compared to the EGP24bn chalked up for FY2017, according to the latest annual report of the Financial Regulatory Authority (FRA).
Insurers paid a total compensation of about EGP15.4bn in FY2018, 19.4% higher than in FY2017, reported Youm7 citing the annual report. The number of insurers operating in Egypt was 37 as at 30 June 2018.
Mr Reda Abdel Moaty, FRA deputy chairman said the net profit of the sector in Egypt for FY2018 fell by 23% to around EGP3.7bn. He pointed out that despite the decline in FY2018, the results had improved over the last four years. Net gains of the industry stood at EGP2bn for FY2014. This increasing trend has resulted in more investments entering Egypt through the establishment of new companies.
Shareholders’ equity of insurers reached EGP38bn as at 30 June 2018, 23.3% higher than a year ago.
The FRA annual report also said that 60% of insurers in Egypt were issuing policies in electronic form by June 2018. The regulator is encouraging the sector to turn to technology in the issuance and distribution of standard policies which do not require complicated subscription steps. The types of policies which the FRA allows to be issued electronically include personal accident, travel, short-term life and compulsory motor TPL. M
EGP1 = $0.06