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AM Best Affirms Credit Ratings of Misr Insurance Company

AM Best has affirmed the Financial Strength Rating of B++ (Good), the Long-Term Issuer Credit Rating of “bbb” (Good) and the Egypt National Scale Rating (NSR) of aaa.EG (Exceptional) of Misr Insurance Company (MIC) (Egypt). The outlook of these Credit Ratings (ratings) is stable. MIC is the non-life insurance subsidiary of Misr Insurance Holding Company (MIHC).

The ratings reflect MIC’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM). The ratings also benefit, in the form of lift, from MIHC’s financial strength, due to MIC’s strategic importance to the group.

MIC’s balance sheet strength is underpinned by its risk-adjusted capitalisation at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR). AM Best expects the company’s BCAR score to remain comfortably above the minimum level required for the strongest assessment, supported by good internal capital generation and low underwriting leverage. Despite MIC’s relatively conservative investment allocation by asset class, AM Best considers the quality of its assets to be weak given the company's concentration in Egypt, which exposes MIC’s balance sheet to volatility. The balance sheet strength assessment also factors in the company’s moderate dependence on reinsurance.

MIC has a track record of robust operating performance, demonstrated by a five-year (2019-2023) weighted average return-on-equity and combined ratio of 12.0% and 92.8% (as calculated by AM Best), respectively. The company’s investment results remain the primary contributor to earnings, supported by the high interest rate environment in Egypt, accounting for approximately 78% of pre-tax profits over the last five years.

MIC has an excellent position in its domestic market. The company’s gross written premium increased by 34.8% to EGP 14.0 billion during fiscal year-ended 30 June 2023 (fiscal-year 2023). Despite the macroeconomic pressures, the company maintained its market-leading position in Egypt’s non-life insurance sector, with a market share of approximately 40%. Whilst business is concentrated in Egypt, the company benefits from a modest level of geographic diversification stemming from its regional inwards facultative business, which accounted for approximately 15% of premium revenue during fiscal-year 2023.

In recent years, MIC has implemented tools that enable it to reliably manage its risk exposures and formalise its risk management framework. The ERM assessment takes into account AM Best’s expectation that MIC will continue to develop and integrate its risk management framework to adapt to the evolving risk landscape.

MIC is exposed to the high economic, high political and very high financial system risks associated with operating in Egypt, which AM Best views as a partially offsetting factor to the ratings.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

Copyright © 2024 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.


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