By Hossam Mounir
The Misr Insurance Holding Company (MIHC) controls approximately 60% of the insurance market in Egypt, despite the competition between several companies in the sector, according to Deputy Chairman Basel El-Hini.
Talking to Daily News Egypt, El-Hini explained that MIHC was established in 2006 to restructure and organise the state-owned insurance sector. Companies were merged, life and properties portfolios were separated, and an independent company to manage real estate assets was established. The restructuring of these companies has greatly contributed to improving their performance and maintaining their levels in the market.
Three companies emerged from MIHC, and are 100% owned by it: Misr Insurance (properties); Misr Life Insurance; and Misr Real Estate Assets.
“The volume of the company’s investments is estimated at nearly EGP 30bn, divided on cash investments, government debt tools, bank deposits, some bonds, and direct contributions in more than 200 companies,” said El-Hini.
He added that the company’s direct investments are divided on several sectors, including banks, food, industry, trade and infrastructure.
“The company’s management has an ambitious strategy that aims to achieve a growth of its market share while maintaining financial stability through supporting allocations and reserves. It also targets the restoration of the credit rating of its subsidiary companies by global institutions specialised in this regard, where Misr Insurance’s last rating was in 2010,” said El-Hini.
He added that the company is targeting a transition into an integrated financial group. To achieve that goal, it plans to participate in a variety of projects represented in a cooperative insurance of life and properties as well as entering into the activity of reinsurance, financial leasing and microfinance.