New minimum capital requirements for the Egyptian insurance sector

The Egyptian Financial Regulatory Authority (FRA) has issued a decree defining new minimum capital requirements.

The new regulations require most insurers to increase their capital in two phases:

• for life and non-life insurers, share capital must rise to 400 million EGP (7.9 million USD) within one year, and to 600 million EGP (11.9 million USD) within two years.
• For non-life insurers covering oil, aviation and energy risks, the capital requirements are set at 450 million EGP (8.9 million USD) for the first phase and 650 million EGP (12.9 million USD) for the second phase.

Other market players must comply with the following minimum capital requirements within a year:

• Reinsurers: 1 billion EGP (19.9 million USD)
• Microinsurance companies: 40 million EGP (794 000 USD)
• Insurance and reinsurance brokers: 5 million EGP (99 300 USD)