QNB Egypt Bank, a subsidiary of the Qatari-owned commercial bank, QNB, plans to establish a property insurance company, in a move aimed at completing the group's non-banking financial services system. The new company is likely to be named QNB Insurance.
Informed sources told the news platform Amwal Alghad, that the new insurer had obtained initial approval from the Financial Regulatory Authority to conduct a feasibility study. The necessary legal and regulatory procedures are also being completed in preparation for receiving the final licence to conduct insurance operations.
The bank already owns a stake in QNB Life Insurance–Egypt, and the establishment of the property insurer will expand the group’s business in the Egyptian insurance market.
QNB Egypt Bank, along with QNB Life Insurance-Egypt, will contribute to the capital of the new company, with the possibility of participation by other shareholders, when the final shareholding structure is adopted.
Under the Unified Insurance Law, the minimum issued and paid-up capital for insurance companies that engage in a single activity is EGP600m ($12m). According to the Financial Regulatory Authority’s regulations for licensing insurance and reinsurance companies, the company’s ownership structure must include a contribution from a financial institution that owns at least 25% of the capital, or a qualified investor that owns at least two-thirds of the capital directly or indirectly.