The Egypt Financial Regulatory Authority has issued new controls for the operation of reinsurance companies and their branches in the Egyptian market, creating for the first time a dedicated approved register and requiring licensed Egyptian insurers to deal exclusively with reinsurers or branches registered by the Authority. The framework introduces tighter registration criteria, including that the reinsurer is subject to oversight by a foreign regulator with comparable powers and holds a current international credit rating of at least B+ (A.M. Best), BBB (S&P or Fitch) or Baa (Moody’s), alongside a requirement that the entity has not engaged in practices harmful to the Egyptian insurance market in the prior three years. For commercial reinsurers, at least two of the following must also be met: the home country sovereign rating is at least BBB- (Fitch or equivalent), paid-up capital is at least USD 75 million, or shareholders’ equity is at least USD 125 million, while takaful reinsurers need only meet one of these conditions. The decision also sets branch conditions (including registration of the parent entity and a guarantee letter accepting full responsibility), specifies application documentation, imposes insurer obligations (including annual confirmations by end-March, concentration reporting and notification of changes), sets concentration caps across property and personal insurance reinsurance placements, and provides for delisting where conditions are no longer met or other specified triggers occur. Egyptian insurers are required to align with the new requirements within one year from the decision’s entry into force, with the possibility of an extension by the Authority; non-compliant reinsurers or branches are to be removed from the register, with a two-month window for re-registration requests where grounds exist. The Authority will publish the compliant list on its website, and the existing roster of 268 active reinsurers from 47 countries and 16 active foreign branches from 10 countries will need to meet the new standards within the transition period to remain listed.
Egypt Financial Regulatory Authority 2025-11-10
Egypt Financial Regulatory Authority establishes an approved register for reinsurers and requires insurers to cede only to listed entities
The Egypt Financial Regulatory Authority now requires Egyptian insurers to engage only with reinsurers registered by the Authority. The framework mandates tighter registration criteria, including oversight by a comparable foreign regulator, a minimum international credit rating, and specific financial conditions for commercial and takaful reinsurers. Insurers must comply within a year, with non-compliant reinsurers facing delisting. The Authority will publish a list of compliant entities.