Egypt – Destiny of “national reinsurer”
Wednesday, 11 23 2016, Category: Insurance and Reinsurance, Country: Egypt
It is no longer known whether insurance companies operating in Egypt are serious about establishing a new national reinsurer. The only company operating in this field has been merged in year 2007 with one of the companies of “Misr Insurance Holding”. The market is currently facing the US Dollar crisis and the contribution of shareholders to the new company is unknown.
However, Misr Insurance Holding confirms that it plans to contribute 15% of the capital, which is set according to the feasibility of “Price Water House Coopers” to USD 200 million. Moreover, private sector companies plan to contribute without specifying their respective shares of financing.
The founding committee of the national reinsurance company claims it was successful in securing 40% of the capital but it did not fully secure the remaining amount. The speed of establishment of the company depends on the developments of the global reinsurance market including competition, solvency in addition to the local conditions such as the liberalization of the EGP and the increase of USD to around 16 Egyptian Pounds.
Source: Al Borsa News