Gulf Insurance Group (GIG) Egypt's subsidiary has increased it paid up capital to EGP600m ($11.9m), the move comes completing the merger with AIG Egypt, a subsidiary of American International Group. In the last quarter of 2023, GIG acquired AIG Egypt in a deal valued at around EGP197m. Last January, the Group consolidated its Egypt subsidiary, GIG Egypt, with its newly acquired company AIG Egypt.
The company’s new paid-up capital (EGP600m) is in line with the decision the Financial Regulatory Authority (FRA) took to increase the minimum capital requirement for insurance companies; and ahead of the deadline granted to companies to comply with the new requirements, GIG Egypt managing director Alaa El-Zoheiry told “Amwal El-Ghad” newspaper.
As part of setting into effect the regulations of the new Unified Insurance Law, the FRA issued decision no. 196 of 2024 setting the minimum capital required for companies operating in the insurance sector. The decision mandates life and property insurers to raise the minimum issued and paid-up capital in two stages over two years to reach EGP400m in the first stage, which takes place within one year from the date of the decision's implementation, then the capital is increased in the second stage to reach EGP600m by the end of the second year from the date of the decision's being enforced.