Misr Life Insurance Company (MLIC), Egypt's biggest life insurer, continued to demonstrate strong operating performance in 2025, says AM Best.
The life insurer reported a return on equity (including movements through other comprehensive income) of 28.7%, as calculated by AM Best.
The company continues to write profitable business, as demonstrated by the material growth in initially recognised contractual service margin (CSM) in the first two years of results reported under the new Egyptian Accounting Standard No. 50 (EAS 50).
Overall operating performance is further supported by strong investment income from its well-diversified portfolio. Furthermore, MLIC has shown resilience in its operations in light of the macroeconomic pressures arising from the recent conflict in the Middle East, with no material impact seen to date.
Ratings affirmed
AM Best has affirmed MLIC’s Financial Strength Rating of ‘B++’ (Good), Long-Term Issuer Credit Rating of ‘bbb’ (Good) and Egypt National Scale Rating (NSR) of ‘aaa.EG’ (Exceptional). The outlook of these credit ratings is ‘Stable’. MLIC is the largest life insurance subsidiary of the government-owned Misr Insurance Holding Company (MIHC).
The ratings reflect MLIC’s balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management. The ratings also reflect rating enhancement, in the form of a lift, from its parent, MIHC, due to MLIC’s strategic importance to the group.
MLIC’s risk-adjusted capitalisation remained at the strongest level at 31 December 2025, as measured by Best’s Capital Adequacy Ratio (BCAR). AM Best expects MLIC’s BCAR scores to remain at the strongest level, supported by its solid internal capital generation.
The balance sheet strength assessment also factors in the company’s considerable amount of soft capital, including discretionary bonus reserves, unrealised gains on real estate assets and the CSM under EAS 50, which was implemented in 2025. Despite the quality of MLIC’s assets being considered weak, given their concentration in Egypt, AM Best also factors in the company’s foreign currency holdings, which partially offset the recent devaluations of the local currency.
Business profile
MLIC holds a leading position in Egypt’s life insurance sector, with a market share of approximately 30%. Management seeks to maintain this position via several strategic initiatives, including expanding its distribution partnerships and developing innovative new product offerings such as unit-linked products.
Meanwhile, MIHC shareholders have approved offering 20% ??of MLIC’s shares on the Egyptian Exchange, in a move aimed at expanding the company’s ownership base and strengthening its presence in the capital market, within the framework of the government’s offerings programme.
The IPO is part of the government’s programme to expand the ownership base of state-owned companies, enhance private sector participation, and deepen the capital market.