The Financial Regulatory Authority (FRA), chaired by Islam Azzam, has issued its annual report on the performance of private insurance funds in 2025, highlighting the sector’s key financial and operational indicators and developments in contributions, assets, investments and insurance benefits paid to members.
The report highlighted the role private insurance funds play in strengthening social protection and providing financial benefits to employees and members upon retirement or termination of membership, in accordance with each fund’s governing rules. The funds also contribute to savings accumulation and channel these savings into diverse investment avenues, supporting economic activity and contributing to the development of the capital market and financial sector, according to the report.
The number of active private insurance funds stood at 665 in 2025, compared with 671 in 2024. About 86 funds were under liquidation, bringing the total number of active funds and those under liquidation to 751.
The number of fund members reached approximately 4.21 million at year-end, highlighting the importance of private insurance funds to a broad segment of the population benefiting from the savings and insurance protection they provide.
On the financial front, total assets held by private insurance funds rose to EGP 238.2bn in 2025, compared with EGP 195.7bn in 2024, marking growth of 21.7%.
Reserve funds also increased to approximately EGP 226bn, up from EGP 184.7bn a year earlier, representing growth of 22.3%. The figures reflect the strengthening of the funds’ financial base and their ability to meet their obligations to members in accordance with each fund’s rules.
Total investments reached EGP 210.9bn in 2025, compared with EGP 168.1bn in 2024, representing growth of 25.5%. Net investment returns increased to EGP 40.6bn, up from approximately EGP 31.4bn in the previous year, marking an increase of 28.9%. This reflects the growth in investment income and underscores the importance of efficient asset management in generating returns that support the funds’ future obligations.
Total subscriptions, including contributions from sponsoring entities, increased to EGP 23.4bn in 2025, compared with EGP 18.6bn in 2024, marking growth of 25.1%.
Insurance benefits paid by the funds rose to EGP 20bn in 2025, up from EGP 17.9bn a year earlier, an increase of 11.7%. This highlights the funds’ direct role in providing financial entitlements to members when covered insurance events occur.
Benefits associated with reaching retirement age accounted for the largest share of payments, totalling approximately EGP 13.45bn. These were followed by periodic pension payments of EGP 2.81bn and benefits related to members’ deaths, amounting to EGP 1.22bn.
Regarding investment allocation, the report showed a notable concentration in financial instruments linked to the banking sector and government debt. Government-guaranteed securities accounted for approximately EGP 88.27bn.
Deposits, savings certificates and investment accounts included in the report totalled approximately EGP 88.05bn. Investments in fixed-income fund certificates reached EGP 11.49bn, while shares traded on the Egyptian Exchange amounted to EGP 4.46bn. Other investments accounted for EGP 7.49bn.
Islam Azzam said the report’s indicators underscored the growing economic importance of private insurance funds as channels for accumulating and investing long-term savings. He also highlighted their role in supporting the financial stability of members and their families, while providing funding resources invested in debt instruments, the banking sector and the capital market.
Azzam stressed the importance of continuing to strengthen oversight mechanisms for the funds, improving their management, enhancing governance and boosting investment efficiency in accordance with Unified Insurance Law No. 155 of 2024 and the FRA’s regulatory decisions. These measures seek to strike a balance between growing members’ assets and ensuring that the funds can meet their insurance benefit obligations.
The report was issued as part of the FRA’s commitment to making data and indicators on non-banking financial activities publicly available, enhancing transparency and raising awareness of sector performance. This supports assessments of market developments, helps foster market growth and maximises the sector’s contribution to the national economy.
