dailynewsegypt.com
Timing in Egypt is right for IPOs: Financial Regulator
Total of 4 insurance companies have applied for property insurance licence, said FRA Vice-President
Alyaa Stohy January 19, 2021 Comments Off

E
FG Hermes obtained an approval, on Monday, to issue securitisation bonds worth EGP 1bn in favour of a portfolio it manages, Mohamed Omran, Chairperson of the Financial Regulatory Authority (FRA), has revealed.
Omran’s remarks came during an online conference held by EFG Hermes. He added that, despite the economic implications of the novel coronavirus (COVID-19) pandemic, 2020 witnessed a significant 9% increase in the value of securitisation bond issuances.
He pointed out that the value of securitisation bond issuances was recorded at EGP 24.1bn in 2020, compared to EGP 22.1bn in 2019.
The FRA head asserted that the timing in Egypt is right for IPOs, for both the private and governmental sectors.
Omran added that the volume of liquidity during the coming period will be better than it was in previous situations, which will enhance the Egyptian Exchange’s (EGX) positive role in providing basic financing to companies.
He added that the discount on commissions from 51/1000 to 30/1000 had a positive impact on the EGX.
Moreover, FRA Vice-President Reda Abdel Moati revealed that two local and two foreign insurance companies are seeking property insurance licences.
He added that the door has now been closed to applications for an “insurance brokerage” licence, but that two companies had applied for the licence before the closure to applications.
The value of compensation rose to EGP 5.1bn during the period between April and June 2020, compared to EGP 3.6bn during the corresponding period of the previous year. This reflects the increase in claims due to the dangers resulting from the repercussions of the coronavirus.
The total value of compensation paid from insurance companies at the end of fiscal year (FY) 2019/20 continued to rise, reaching EGP 18.9bn, compared to EGP 18.3bn in the previous FY, reflecting an increase of about 3.3%.
The economic slowdown in the last quarter (Q4) of FY 2019/20, as a result of the precautionary measures adopted by the state to control the pandemic. This led to a commensurate slowdown in the growth rates of total premiums in 2020 to 14%, compared to a growth rate of 19.3% during the previous year.
This came as the total value of instalments reached about EGP 40.1bn in FY 2019/20, compared to EGP 35.2bn in FY 2018/19.
The total value of insurance company policyholders’ rights increased at the end of FY 2019/20, to EGP 77.2bn, compared to EGP 69bn in the previous FY, reflecting an increase of about 12%.
The total value of insurance companies’ investments at the end of FY 2019/20 increased to reach EGP 107.8bn compared to EGP 102bn at the end of the previous year, an increase of about 5.7%.
The net assets of insurance companies increased at the end of FY 2019/20 to EGP 128.6bn, an 8.8% increase on the EGP 118.2bn recorded in the previous FY.
The estimated value of private insurance fund investments amounted to about EGP 83.4bn at the end of FY 2019/20, compared to EGP 75.8bn at the end of the previous year, reflecting a growth rate of 10%.
Topics: EGX Egyptian ExchangeFinancial Regulatory Authority FRA hermesIPO securitisation bonds
Alyaa Stohy
MORE IN BUSINESS
MORE IN ALYAA STOHY
Recommended
After pandemic-caused market uncertainty, highly anticipated IPOs stand in queue in 2021
Hermes predicts favourable Egyptian investment climate after boosting bank regulations
Egypt offers incentives for non-banking financial activities aimed at supporting women
Prime Minister issues statute of Egypt’s arbitration centre for non-banking financial disputes
Egypt’s financial regulator joins Network for Greening Financial System
Financial Regulatory Authority approves 7 securitisation bond issuances worth EGP 10bn
FRA issues controls for licensing SME finance companies

Featured Video
Video| Egypt’s President Al-Sisi weighs in on freedom of expression, Islamic extremism
Editorial Pick
Opinion | Why is Egypt postponing the war against Ethiopia?
UNDP, Planning Ministry launch Egypt’s Human Development Report 2021
Al-Sisi ensures personal freedoms as Egypt launches National Strategy for Human Rights
Opinion| Baghdad summit to calm crises
Latest News
Egypt, UK discuss bilateral cooperation to support air traffic
Tourism Minister meets Egypt’s new heads of diplomatic missions abroad
The aquaculture research lab boosting Egypt’s fish production
OPINION
Opinion| Who is the true beneficiary of US aid?
Opinion| Security Council statement: A victory for Egypt’s vision
Opinion| China-Africa Investment Cooperation is Mutually Beneficial with Promising Future
Opinion| Climate Wars and Artificial Intelligence: Cause or Consequence?
MORE OPINION
Receive our daily newsletter
Subscribe