Egypt Insurance Report Q3 2012
Business Monitor International, July 2012, Pages: 73
The Egypt Insurance Report provides industry professionals and strategists, corporate analysts, insurance associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on egypt's insurance industry.
The Egypt Insurance Report considers the prospects for both life and non-life insurers in the country. Thanks, in part, to the political unrest that has swept Egypt since early 2011, the insurance sector has moved from an era of growth to one of stagnation. Prior to late 2010, the outlook had looked promising. Life density was growing quite steadily.
The substantial private insurance funds, which provide basic protection-type products – had underpinned the growth of the sector in years where demand for more sophisticated products had consolidated. Although non-life penetration had been contracting, the overall growth of the economy meant that non-life premiums rose steadily in absolute terms. By combining three state-owned insurance companies and one state-owned reinsurer under the aegis of its Insurance Holding Company, the government could reasonably hope to achieve meaningful synergy benefits for one of the Middle East’s largest composite insurance groups. As is not the case in most other countries in the region, there were no restrictions on foreign participation in the industry. Nor was the non-life segment characterised by cut-throat competition which had crimped profitability for most players. As of mid-2012, it appears that the insurance sector was able to absorb the substantial claims and losses arising from the civil unrest of early 2011. However, most of the other newsflow in recent months has been disappointing. The limited data that has been published suggests that, overall, growth in premiums over the last year or so has been minimal. There seems to have been no obvious progress towards regulatory or legislative changes that would revive bancassurance, promote health insurance or encourage the private health funds. Nor has there been any apparent progress towards removing the impediments that hinder the development of Egypt’s embryonic takaful sector. Perhaps most crucially, the restructuring and reform of the Insurance Holding Company – the composite insurance group that accounts for about half of all premiums in Egypt, but which would rank in most other countries as no more than a medium-sized insurer with an interesting real estate portfolio – looks to be cautious in its scope. Unlike reform of state-owned insurers in other countries, the process has yet to deliver increased transparency, a focus on competitiveness, access to global capital markets, or substantial injections of new capital or innovation in product development.
Over the last quarter, BMI has made the following changes:
- The analysis incorporates BMI’s latest forecasts for Egypt’s economy, including details in relation to auto sales and trends in the healthcare sector.
- The analysis incorporates the regulator’s final data for the year to June 2011, as well as figures from Ernst & Young’s World Takaful Report, which was published in Q212.
Executive Summary 5
Table: Total Premiums, 2008-2016 5
Key Insights And Key Risks 5
SWOT Analysis 7
Egypt Insurance Industry SWOT 7
Egypt Political SWOT 8
Egypt Economic SWOT 9
Egypt Business Environment SWOT 10
Life Sector 11
Middle East Life Sector Overviews 11
Table: Middle East And Africa Life Premiums, 2008-2016 (US$mn) 11
Egypt Life Sector Update 13
Table: Evolution of Gross Written Premiums (EGPmn) And Growth Rate (%) 13
Life Insurance Industry Forecast Scenario 14
Table: Life Premiums, 2008-2016 14
Growth Drivers And Risk Management Projections 15
Population 15
Table: Insurance Key Drivers, Demographics, 2008-2016 15
Non-Life Sector 17
Middle East Non-Life Sector Overview 17
Table: Middle East And Africa Non-Life Premiums, 2008-2016 (US$mn) 17
Egypt Non-Life Sector Update 20
Table: Non-Life Company Net Premiums (EGP’000) 20
Non-Life Insurance Industry Forecast Scenario 22
Table: Non-Life Premiums, 2008-2016 22
Growth Drivers And Risk Management Projections 23
Macroeconomic Outlook 23
Table: Egypt’s Macroeconomic Data And Forecasts 2008-2016 26
Political Stability Outlook 26
Table: Middle East And Africa Defence And Security Ratings 31
Healthcare 31
Epidemiology 36
Table: Egypt’s Insurance Key Drivers – Disease Adjusted Life Years, 2009-2016 38
Motor 39
Islamic Finance 40
Insurance Risk/Reward Ratings 42
Table: Egypt’s Insurance Risk/Reward Ratings 42
Table: Middle East And Africa Insurance Risk/Reward Ratings 43
Competitive Landscape 44
Competitive Landscape Analysis 44
Major Players In Egypt’s Insurance Sector 45
Table: Life Company Net Premiums, 2008-2010 (EGP ‘000) 46
Table: Non-Life Company Net Premiums, 2008-2010 (EGP ‘000) 47
Egypt Insurance Report Q3 2012
© Business Monitor International Ltd
Page 4
Table: Egypt’s Competitive Landscape In Regional Context 48
Company Profiles 50
Local Company Profiles 50
Misr Insurance Holding Company 50
Regional Company Profiles 52
Allianz 52
Arab Insurance Group (ARIG) 54
Aviva 55
AXA 56
Chartis 57
MAPFRE 59
MetLife ALICO 60
RSA 62
Zurich Insurance Group 63
BMI Methodology 64
Insurance Risk/Reward Ratings 66
Table: Insurance Risk/Reward Indicators And Rationale 67
Table: Weighting Of Indicators 68
Demographic Outlook 69
Table: Egypt's Population By Age Group, 1990-2020 ('000) 70
Table: Egypt's Population By Age Group, 1990-2020 (% of total) 71
Table: Egypt's Key Population Ratios, 1990-2020 72
Table: Egypt's Rural And Urban Population, 1990-2020 72
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