Arope Life Insurance-Egypt is preparing to engage in microinsurance after obtaining the necessary regulatory approvals for operating in this branch of business.
The company’s general assembly and board of directors decided to transform the insurer into a company specialising in microinsurance, reported Amwal Alghad.
The company has confirmed that insurance policies issued before the change will remain valid in accordance with the terms and conditions set out in the policies until their expiry date, to preserve the rights of customers and beneficiaries.
A source told Amwal Alghad that one reason for the company’s desire to limit its operations to microinsurance only is the insurance law’s requirements regarding the minimum capital of insurance companies. The law stipulates that insurance companies specialising in microinsurance must have a minimum paid-up capital of 40m ($820,000). In comparison, life insurance companies shall increase their capital to EGP400m by 10 July 2026 and then to EGP600m by the end of the 12 months thereafter.
Other insurers have acted to comply with the minimum capital requirements by raising their capital.
Arope Life Insurance–Egypt was established in 2008, and has an issued capital of EGP100m. It is the insurance arm in the Egyptian market of Blom Bank, a major bank in Lebanon.