The net investments of insurance companies in the Fiscal Year (FY) 2017/18 recorded EGP 99.3bn up from EGP 85.5bn in FY 2016/17, a growth of 16.1%, said the Chairperson of the Financial Regulatory Authority (FRA), Mohamed Omran, during the FRA’s board of directors’ meeting with Prime Minister Mostafa Medbouly on Friday.

The net investments of insurance companies in FY 2016/15 amounted to EGP 60bn.

Omran noted that there are 733 private insurance funds in Egypt until the end of 2018, compared to 719 funds at the end of 2017, noting that the investments of these funds amounted to EGP 70bn on 31 December 2018 compared to EGP 62bn in 2017, a growth of 12.9%, compared to EGP 54.6bn in 2016.

Talking about the value of insurance premiums until the end of June 2018, Omran stated that the insurance companies achieved EGP 29.5bn in premiums at the end of June 2018 up from EGP 23.9bn in 2017, a growth of 23%.

An improvement in the results of insurance companies’ activities was felt in general during the period from 2014 to 2018 which will be reflected in attracting more new investments to the Egyptian insurance market in the coming period.

“The total amount of paid claims by insurance companies rose to EGP 15.4 bn, compared to EGP 12.9bn in the last FY, an increase of 19.5%,” stated Omran.

“The value of total assets of insurance companies in Egypt reached EGP 112.4bn during FY 2017/18, compared to EGP 98.1bn at the end of June 2017, an increase of 14.7%,” added Omran.

The contribution of the insurance sector to GDP reached 0.91% in 2018, thus the FRA is currently developing legislation and laws governing insurance activity and private insurance funds under the name of the Unified Insurance Law.

Notably, the FRA is currently working on amending Law No. 10 for 1981, which is an umbrella of all laws related to insurance, such as compulsory, private funds, Takaful, micro, and medical insurance.