Egypt: Insurers' combined net profit jumps by 25% in 2020
Source: Middle East Insurance Review | Apr 2021
The Egyptian insurance sector has posted a 25% jump in net surplus to EGP6bn ($381.5m) – comprising underwriting gains and investment returns – for the 12 months to 31 December 2020, compared to EGP4.8bn in 2019.
The profit increase was achieved despite the COVID-19 pandemic, and its negative effects on the global and local economy, reported Al Mal.
In 2020, insurance companies in the country increased their total premiums to EGP39bn, compared to around EGP35bn in 2019, representing growth of 11.4%, according to official data released by the Egyptian Financial Regulatory Authority (FRA).
Life business accounted for EGP22.3bn in premiums in 2020, 19.8% higher than in 2019. Property and liability insurers posted an increase of 1.8% in premiums to EGP16.7bn in 2020.
According to the FRA’s data, the 36 insurance companies in the private sector in Egypt commanded a share of 68.8% of total premiums collected in 2020. In comparison, government-owned insurers — Misr Insurance and Misr Life Insurance — obtained a market stake of 31.2%.
The five biggest insurers in terms of market premiums in 2020 were: Misr Insurance (17.67%); Misr Life (13.49%); Allianz Life Insurance – Egypt (11.98%); MetLife (8.09%); and AXA Life Insurance – Egypt (6.99%). M
EGP1 = $0.06