Economy & Politics

Egypt: Fitch gives Misr Insurance Company an ‘AA’ rating, with stable outlook

For Fitch Ratings, Misr’s rating reflects its leadership position as the largest insurance company in the Egyptian insurance market, strong capitalization and financial performance, and a prudent investment strategy by local standards .

The company recorded gross written premiums (PRG) of 9.3 billion EGP (approximately 584 million USD) in 2020, its share of PRG in Egypt is 45% in a market of 38 players. Fifteen percent of its 2020 premiums were written outside Egypt, of which 13% was internal reinsurance business and 2% through three foreign branches in Qatar, Kuwait and Dubai.

“Our vision of Misr’s capitalization is underpinned by its extremely strong regulatory solvency of 1,540% as of the same date,” notes Fitch for whom Misr’s financial performance and earnings are strong. This performance reflects an average combined ratio over five years of 90%.

Fitch considers Misr’s investment strategy to be prudent, albeit strongly correlated with the Egyptian economy. Misr’s assets are 52% invested in cash and cash equivalents in Egyptian banks, 28% in fixed income securities and 20% in equities.

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