Egypt: Wethaq Takaful second operator to convert to conventional insurance operations
Source: Middle East Insurance Review | May 2023
Wethaq Takaful Insurance Company in Egypt has started the process to convert its operations from takaful to conventional insurance.
The conversion will be carried out in accordance with rules set by the Financial Regulatory Authority (FRA), reported Al Mal News.
On 29 January 2023, the FRA published in the Official Gazette a set of rules and procedures for revising the licensing of takaful providers to allow them to operate in the traditional conventional insurance system in the Egyptian market.
In switching to conventional insurance operations, Wethaq Takaful is following on the heels of Kaf Life Insurance. The latter, formerly known as Tokio Marine Family Takaful, is the first takaful operator to be given the green light by the FRA to convert from takaful to conventional insurance. With the approval that was granted in March 2023, the conversion would allow Kaf Life Insurance more leeway to create value-generating insurance solutions that promote financial inclusion.
Wethaq Takaful started operations in 2008 to carry on all types of takaful services covering property and casualty. It is owned 39.9% by ADEEM Investment & Wealth Management (Kuwait) with the remaining stake held by a group of businessmen.
The insurer posted a 2.9% increase in distributable net profits to EGP57.8m ($1.87m) on the back of a 16.3% jump in total premiums to EGP718.5m in the financial year ended 30 June 2022, compared to the previous financial year. M