Egypt Financial Regulatory Authority raises minimum paid-up capital for insurers to EGP 600 million over two years and sets EGP 1 billion for reinsurers

The Egypt Financial Regulatory Authority issued Board decision No. 196 of 2024 setting higher minimum issued and paid-up capital requirements across the insurance sector under Egypt’s Unified Insurance Law. The framework phases in higher capital for life and non-life insurers over two years and bars cash dividend distributions until minimum capital requirements are met unless the FRA provides a no-objection. For insurers of persons and of property and liabilities, minimum capital must reach EGP 400 million within one year of the decision taking effect and EGP 600 million by the end of the second year. Property and liability insurers writing petroleum, aviation or energy insurance face the same phased thresholds, increased by EGP 50 million for each of those branches carried on. The decision also sets minimum capital of EGP 40 million for microinsurance firms, EGP 75 million for specialised insurers (including specialised medical insurers), and EGP 1 billion for reinsurance companies. Capital must be fully paid in Egyptian pounds or the equivalent in freely convertible foreign currencies accepted by the Central Bank of Egypt. Firms covered must submit a timetable to the FRA within one month of the decision taking effect showing how they will meet the required increases, and other addressed entities are required to regularise their position within one year; minimum capital is also set for related service providers at EGP 20 million for medical insurance programme managers, EGP 5 million for insurance and reinsurance brokers, and EGP 3 million for each of risk assessment experts, surveying and loss adjustment experts, insurance consultancy experts and actuarial expertise firms.