Egypt Insurance Report Q3 2011
Includes 3 FREE quarterly updates
It remains to be seen what will be the impact on the sector of the political upheaval.* Life insurance in particular was growing rapidly before the beginning of 2011. * Thanks to the general rise of the economy, non-life insurance was also expanding at a respectable rate.
The sector is well into the second phase of the reform programme mandated by the restructured regulator and the Ministry of Investment. Some clear benefits should be visible when the final figures for the year to June 30 2011 become available.
Prior to the beginning of 2011, we were of the view that Egypt’s insurance sector was one of the more exciting in the Middle East and North Africa. (MENA) Life insurance is well established, thanks partly to the private insurance funds that account for almost half of gross premiums. The market has long been open to foreign players and is not crowded with large numbers of sub-scale local companies, many of which are parts of conglomerates that have no clear competitive advantage in insurance. The regulatory regime has been overhauled and the state-owned insurance companies have been merged into one organisation, Misr Insurance Holdings, which would rank as a reasonably large composite insurer (with an interesting real estate portfolio) in most countries.
The main weakness has been evident in the non-life segment. In any year, there have typically been some lines that have grown very quickly and others that have stagnated or declined. Even in an industry that is dominated by a large state-owned company, almost half of gross premiums are ceded as outwards reinsurance. Non-life penetration appears to have fallen over recent years. Gross premiums have been boosted by the expansion in nominal GDP but the growth rate has been slowing.
At the time of writing. neither the regulator nor the insurance companies have published data to show what has been the impact on business of the political unrest and consequent downturn in economic activity in Egypt in 2011. For the time being, we are reasonably optimistic that both insurance segments will continue to grow over the long-term, with all insurers committed to their operations in Egypt. Life insurance premiums will be a crucial indicator of how Egypt’s wealthier households have assessed the recent developments and it will be a bad sign if the segment stagnated.
It remains to be seen what will be the impact on the sector of the political upheaval.* Life insurance in particular was growing rapidly before the beginning of 2011. * Thanks to the general rise of the economy, non-life insurance was also expanding at a respectable rate.
The sector is well into the second phase of the reform programme mandated by the restructured regulator and the Ministry of Investment. Some clear benefits should be visible when the final figures for the year to June 30 2011 become available.
Prior to the beginning of 2011, we were of the view that Egypt’s insurance sector was one of the more exciting in the Middle East and North Africa. (MENA) Life insurance is well established, thanks partly to the private insurance funds that account for almost half of gross premiums. The market has long been open to foreign players and is not crowded with large numbers of sub-scale local companies, many of which are parts of conglomerates that have no clear competitive advantage in insurance. The regulatory regime has been overhauled and the state-owned insurance companies have been merged into one organisation, Misr Insurance Holdings, which would rank as a reasonably large composite insurer (with an interesting real estate portfolio) in most countries.
The main weakness has been evident in the non-life segment. In any year, there have typically been some lines that have grown very quickly and others that have stagnated or declined. Even in an industry that is dominated by a large state-owned company, almost half of gross premiums are ceded as outwards reinsurance. Non-life penetration appears to have fallen over recent years. Gross premiums have been boosted by the expansion in nominal GDP but the growth rate has been slowing.
At the time of writing. neither the regulator nor the insurance companies have published data to show what has been the impact on business of the political unrest and consequent downturn in economic activity in Egypt in 2011. For the time being, we are reasonably optimistic that both insurance segments will continue to grow over the long-term, with all insurers committed to their operations in Egypt. Life insurance premiums will be a crucial indicator of how Egypt’s wealthier households have assessed the recent developments and it will be a bad sign if the segment stagnated.
Contents
Executive SummaryTable: Total Premiums, 2008-2015
Key Insights And Key Risks
SWOT Analysis
Egypt Insurance Industry SWOT
Egypt Political SWOT
Egypt Economic SWOT
Egypt Business Environment SWOT
Life Sector
Middle East Life Sector Overview
Table: Middle East And Africa Life Premiums, 2008-2015 (US$mn)
Egypt Life Sector Update
Table: Evolution Of Gross Written Premiums, 2005-2010 (EGPmn)
Life Insurance Industry Forecast Scenario
Table: Life Premiums, 2008-2015
Growth Drivers And Risk Management Projections
Population
Table: Insurance Sector Key Drivers – Demographics, 2005-2015
Non-Life Sector
Middle East Non-Life Sector Overview
Table: Middle East And Africa Non-Life Premiums, 2008-2015
Egypt Non-Life Sector Update
Table: Evolution Of Direct Non-Life Premiums, 2005-2010 (EGP ‘000)
Non-Life Insurance Industry Forecast Scenario
Table: Non-Life Premiums, 2008-2015
Growth Drivers And Risk Management Projections
Macroeconomic Outlook
Table: Egypt Economic Activity, 2006-2015
Political Stability Outlook
Table: Middle East And Africa Defence And Security Ratings
Healthcare
Healthcare Insurance
Epidemiology
Table: Insurance Sector Key Drivers – Disability-Adjusted Life Years, 2008-2015
Motor
Table: Insurance Sector Key Drivers – Autos, 2008-2015
Tourism
Table: Insurance Sector Key Drivers – Tourism, 2008-2015
Islamic Finance
Insurance Risk/Reward Ratings
Table: Egypt’s Insurance Risk/Reward Ratings
Table: Middle East And Africa Insurance Risk/Reward Ratings
Competitive Landscape
Competitive Landscape Analysis
Major Players In Egypt’s Insurance Sector
Table: Life Company Net Premiums, 2008-2010 (EGP ‘000)
Table: Non-Life Company Net Premiums, 2008-2010 (EGP ‘000)
Table: Egypt’s Competitive Landscape In Regional Context
Company Profiles
Local Company Profiles
Misr Insurance Holding Company
Regional Company Profiles
Allianz
Arab Insurance Group (ARIG)
Aviva
AXA
Chartis
Generali
HSBC Insurance
MAPFRE
MetLife ALICO
RSA
Zurich Financial Services
BMI Methodology
Insurance Risk/Reward Ratings
Table: Insurance Risk/Reward Indicators And Rationale
Table: Weighting Of Indicators 70 Skip to top