Sarwa Life Insurance, the life insurance arm of Contact Financial Holding Group which is a leading non-bank financial services group in Egypt, has established itself among the largest insurance companies in the country.
Mr Rimah Asaad, managing director of Sarwa Life which started operations in 2019, said that the company entered the EGP1bn ($20m) club in the fiscal year ended 30 June 2024, reported Amwal Alghad. The life insurer reported a 55% year-on-year rise in premiums to EGP1.017bn in FY2024. The company also posted operating profits of EGP66m, with a growth rate of 37%, while paying EGP602m in claims and benefits.
He said that the insurer has developed its product range, built strong relationships with insurance intermediaries, and established a production apparatus that has contributed to the company’s growth and increased its customer base.
The insurer witnessed strong growth in premium rates and business profits in all individual and group products in FY2024, achieving its strategy towards achieving balanced growth, in addition to its success in reducing the time for settling claims to a maximum of three weeks for life insurance policies, and seven days in the medical insurance branch, which enhances the company’s credibility with customers.
Capital
Sarwa Life’s paid-up capital currently amounts to EGP100m, said Mr Asaad. He said that the insurer has the support of Contact Financial Holding Group (formerly known as Sarwa Capital), to increase its capital to meet business needs and to comply with the new Unified Insurance Law. The new law stipulates that the minimum capital of insurance companies is to be raised to EGP250m, with insurers given a grace period of three years to comply.
Mr Asaad said, “We intend to complete the minimum required capital during the transitional period in stages, the first of which is the current fiscal year 2024/2025. This includes pumping an increase in the company’s capital by a minimum of EGP50m financed from retained profits, to reach EGP150 million by the end of the fiscal year.”
The life company currently runs two branches in Alexandria and Tanta, in addition to the main headquarters in Cairo. Sarwa intends to expand geographically by launching new branches during FY2025 by launching a new branch in Cairo, in addition to studying expansion in the Upper Egypt and Canal governorates, Mr Asaad said.