AM Best affirms A- rating of Egypt’s Misr Insurance Company
The AM Best insurance rating agency has affirmed the financial strength rating of A- of Egypt’s Misr Insurance Company. The outlook for the company remains stable, stated a press release.
The rating reflects the company's excellent risk-adjusted capitalization, operating performance and business profile in the Egyptian market, according to the rating agency.
AM Best believes that Misr's risk-adjusted capital is excellent as a result of conservative retention levels and off balance sheet strength from its real estate portfolio.
However, capital remains subject to risk from the company's sizeable position in unlisted equities, equivalent to 19 percent of total investments. AM Best does not expect risk-adjusted capitalization to improve as Misr is required to distribute 70 percent of its profits to its employees and to the Egyptian government.
The rating agency believes Misr's excellent record of strong results will continue and expects the company to report a profit of approximately 200 million Egyptian pounds ($33.4 million) at year-end June 2003. This reflects the company's selective underwriting and efficient expense structure.
In 2003, AM Best expects the company to record strong growth in gross premiums. The Egyptian market is undergoing a period of liberalization, and as a result, it has been opened up to new entrants, ending the monopoly of the Egyptian state-owned companies. During this period, Misr has maintained its position as leader in the non-life market and second-largest participant in the life market.
AM Best believes that this position will not be substantially eroded in the immediate future. A partially offsetting factor is the company's dependence upon the Egyptian market for business. — (menareport.com)
© 2004 Mena Report (www.menareport.com)