News Middle East24 Nov 2020

Egypt:Sarwa Insurance sets aside reserve for risks of applying new accounting standard

| 24 Nov 2020

Insurance start-up Sarwa Insurance has allocated EGP2m ($128,000) as a reserve to cover the risks of implementing the Egyptian Accounting Standard No. 47 for Financial Instruments, says Mr Ahmed Khalifa, the company's managing director.

The move by Sarwa Insurance follows an order issued in October by the Financial Regulatory Authority (FRA), directing insurers to set aside funds to deal with the risks of applying the new accounting standard. The reserve is to be built up by allocating funds equivalent to 1% of total assets from the net profit after withholding tax for the last fiscal year ended 30 June 2020.

Sarwa Insurance received its licence from the FRA in March 2019 and started operations several months later. Mr Khalifa says that the insurer posted premiums totalling EGP179m for the 14 months to 30 June 2020. Total assets reached EGP205m as of 30 June 2020.


 

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