Egypt Insurance Report

Published 01 April 2015

  • 73 pages
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$1,295.00
Egypt Insurance Report

BMI View: The key development in 2015 is the launch of a new indigenous reinsurance company. This should facilitate access to reinsurance for property insurers and some other players in Egypt's non-life segment, and will underpin solid, high single-digit growth in premiums through the forecast period. While particular initiatives should boost life premiums in the short term, the market is in many ways mature. We expect that the insurers will maintain tight control of claims and other costs through the forecast period.

Total premiums written in Egypt's insurance sector this year should be equivalent to around 0.7% of GDP, or USD25 per capita. These are low figures, and reflect the fact that the vast majority of the population does not use insurance at all. Low levels of household income and lack of understanding of insurance are likely to persist throughout the forecast period, limiting opportunities for premiums growth.

The entry of AXA and MedGulf to Egypt's insurance market is something of a wildcard. For now, though, we expect that both the life and non-life segments will continue to be dominated by the subsidiaries of Misr Insurance Holding Company, which also owns a substantial real estate operation. In the short term, life premiums should be boosted by initiatives such as the bancassurance alliance between Pharaonic American Life Insurance, an element of MetLife, and ALEXBANK.

Meanwhile, the key development in 2015 is the inauguration of an indigenous reinsurer, in which many of the major Egyptian insurance companies will be shareholders. This should facilitate the insurers' access to reinsurance, and should underpin solid, high single-digit growth in annual premiums through the forecast period. By contrast, we are looking for the expansion in the life segment to lose momentum over the remainder of the forecast period. This is because it is likely to become increasingly difficult to sell additional insurance to existing users.

The evolution of both...

Table of Contents

BMI Industry View
7
SWOT
10
Insurance
10
Political
12
Economic
13
Business Environment
15
Industry Forecast
16
Total Premiums Forecast
16
Premiums
16
Table: Total Gross Premiums Written (Egypt 2011-2018)
16
Table: Total Net Premiums Written (Egypt 2011-2018)
17
Claims
17
Table: Total Insurance Claims (Egypt 2006-2013)
18
Life Premiums Forecast
19
Premiums
20
Table: Gross Life Premiums Written (Egypt 2011-2018)
21
Table: Net Life Premiums Written (Egypt 2011-2018)
21
Claims
22
Table: Life Insurance Claims (Egypt 2006-2013)
22
Healthcare Spending
22
Table: Insurance Key Drivers, Private Health Expenditure (Egypt 2011-2018)
23
Table: Insurance Key Drivers, Disease Adjusted Life Years (Egypt 2011-2018)
24
Non-Life Premiums Forecast
25
Premiums
26
Table: Gross Non-Life Premiums Written (Egypt 2011-2018)
26
Table: Net Non-Life Premiums Written (Egypt 2011-2018)
27
Reinsurance
27
Table: Reinsurance Non-Life Premiums Written (Egypt 2011-2018)
27
Claims
28
Table: Non-Life Insurance Claims (Egypt 2006-2013)
28
Non-Life Subsector Forecast
29
Table: Non-Life % Breakdown (Egypt 2011-2018)
30
Motor Vehicle And Transport Insurance
30
Table: Motor Vehicle Insurance (Egypt 2011-2018)
31
Table: Insurance Key Drivers, Autos (Egypt 2011-2018)
31
Table: Transport Insurance (Egypt 2011-2018)
32
Table: Insurance Key Drivers, Freight Tonnage (Egypt 2011-2018)
33
Property Insurance
33
Table: Property Insurance (Egypt 2011-2018)
33
Health And Personal Accident Insurance
33
Table: Health Insurance (Egypt 2011-2018)
34
Table: Personal Accident Insurance (Egypt 2011-2018)
34
Industry Risk Reward Ratings
35
MEA Insurance Risk/Reward Index
35
Table: MENA Insurance Risk/Reward Index - Q1 2015
36
Market Overview
37
Life Market Overview
37
Table: Life Insurance Market (%) 2011-2012
40
Non-Life Market Overview
41
Table: Non-Life Insurance Market (US$mn) 2011-2012
43
Company Profile
49
American International Group (AIG)
49
Gulf Insurance Group (GIG)
52
MetLife
55
Misr Insurance Holding Company
58
Demographic Forecast
62
Table: Egypt's Population By Age Group, 1990-2020 ('000)
63
Table: Egypt's Population By Age Group, 1990-2020 (% of total)
64
Table: Egypt's Key Population Ratios, 1990-2020
65
Table: Egypt's Rural And Urban Population, 1990-2020
65
Methodology
66
Industry Forecast Methodology
66
Risk/Reward Index Methodology
69
Table: Indicators
71
Table: Weighting of Indicators
72

The Egypt Insurance Report has been researched at source and features BMI Research's independent assessment and forecasts for the insurance sector. It examines industry developments, key growth drivers and risk management projections, including the macroeconomic situation, government policy, regulatory environment and the level of development and potential for growth, broken down by line. Leading insurers are profiled, covering premiums, products and services and competitive positioning.

BMI's Egypt Insurance Report provides professionals, consultancies, government departments, regulatory bodies and researchers with independent forecasts and regional competitive intelligence on the Egyptian insurance industry.

Key Benefits

  • Benchmark BMI's independent insurance industry forecasts for Egypt to test other views - a key input for successful budgeting and strategic business planning in Egypt's insurance market.
  • Target business opportunities and risks in Egypt through our reviews of latest industry trends, regulatory changes and major deals, investments and macroeconomic developments.
  • Exploit latest competitive intelligence on your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).

Coverage

BMI Industry View

Summary of BMI’s key industry forecasts and views, covering the Life and Non-Life segments, the evolving competitive landscape and business operational risks.

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the insurance sector and within the broader political, economic and business environment.

BMI Industry Forecasts

Historic data series (2005-2014) and forecasts to end-2019 for key industry indicators, supported by explicit assumptions, plus analysis of key risks to the main forecasts. Indicators include:

  • Life/non-life Premiums: Total premium growth (USDmn), premium growth (% y-o-y), penetration (% of GDP), density (USD per capita) for Life and Non-Life sectors, claims reinsurance, and assets and liabilities.
  • Non-life subsectors: Data on gross written premiums for all major Non-Life segments (motor, transport, property, personal accident, health, general liability and credit financial).

BMI’s Insurance Risk Reward Index

BMI’s Risk Reward Indices provide investors (Life and Non-Life) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide an indices of highest to lowest appeal to investors, with each position explained.

Company Profiles*

Examines the competitive positioning and short- to medium-term business strategies of key industry players. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

Growth Drivers & Risk Management Projections

Key data and forecasts to end-2019 focusing on the growth drivers and downside risks to specific insurance lines including:

  • Population: Male/female, by age group, active/pensionable/youth population % of total, urban/rural population % of total.
  • Freight: Tonnage – air freight, rail freight, road freight, inland waterway.
  • Motor: Fleet size by type of vehicle % change y-o-y.
  • Epidemiology: Disease Adjusted Life Years and private health expenditure.

Market Overview & Rankings

Illustration of the insurance industry via rankings tables comparing gross written premiums by company (USDmn) and market share (%) for the top 20 players in both Life and Non-Life. This chapter also includes in-depth regional analysis of the market position, business strategies and investment potential of the leading insurance companies.

Sources

The insurance Reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.

*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.

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Testimonials

'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc