The Egypt Financial Regulatory Authority issued a board decision amending insurers’ and reinsurers’ investment rules to expand how much of their allocated funds can be invested in commodity and metals investment fund units, or in metal-backed certificates and financial instruments traded on Egyptian exchanges. The overall cap for these exposures was raised to a maximum of 10%, up from 5%. The amendment also introduces a concentration limit at the level of a single investment fund, requiring that the value invested in any one fund’s units does not exceed the lower of 5% of total allocated funds and 15% of that fund’s net asset value. The Authority framed the changes as supporting greater diversification of insurers’ investment options and higher market liquidity, and linked the update to its wider implementation of Egypt’s Unified Insurance Law No. 155 of 2024.
Egypt Financial Regulatory Authority 2025-06-15
Egypt Financial Regulatory Authority doubles insurers’ cap on commodity and metals fund investments to 10% and sets single-fund concentration limit
The Egypt Financial Regulatory Authority amended investment rules for insurers and reinsurers, increasing the cap on commodity and metals investments to 10% from 5%. A new concentration limit restricts investment in a single fund to the lower of 5% of total allocated funds or 15% of the fund's net asset value. These changes aim to enhance diversification and market liquidity, aligning with Egypt's Unified Insurance Law No. 155 of 2024.