Egypt: Takaful contributions fall in 1H
Source: Middle East Insurance Review | Oct 2023
Gross written contributions for takaful business reached EGP4.3bn ($138m) in the first six months of 2023 versus EGP4.5bn generated in the same period of the past year, a decline of more than 6% from EGP4.5bn generated in the corresponding period of 2022.
Over the first half of 2023, GWP of conventional operators grew by almost 36% to EGP31.5bn from EGP23.2bn, according to the latest monthly publication issued by the Financial Regulatory Authority.
In the first half of this year, overall gross written premiums and contributions in the insurance sector reached EGP35.8bn, up by almost 29% against the same period of 2022, with takaful contributions accounting for 13.5% of the overall operations.
The growth of the market was supported by the strong performance of property and liability insurance branches which operations jumped by 60% to EGP17.4bn from EGP10.86bn. Life and savings business, on the other hand, witnessed a slower growth as premiums reached EGP18.4bn compared with EGP16.9bn in 1H2022, an 8.9% increase.
Paid claims for takaful operators in Egypt reached EGP1.6bn in 1H2023, up by 20.3% from the corresponding period of the past year. Gross paid claims for the market grew by around 23% to EGP15.9bn from EGP12.9bn in 1H2022.
Currently there are seven takaful operators in Egypt, down from nine as two operators decided to convert their operations to the conventional model earlier this year. M