Egypt’s first government-owned takaful insurance company is expected to commence operations within six months, Egyptian Minister of Public Sector Affairs Ashraf El-Sharkawy said on Sunday.
Until then, the Ministry of Public Sector Affairs will work on completing licencing procedures for the company ahead of issuing its own insurance policies, El-Sharkawy said speaking at the new company’s official launch ceremony.
The new company, Misr Takaful Insurance will have authorised capital of around 500 million Egyptian pounds ($28.1 million), issued capital of 120 million pounds, and paid-up capital of 60 million pounds.
Misr Insurance Holding holds a 40 percent stake in Misr Takaful Insurance; while Misr Life Insurance has 20 percent, Misr Real Estate Assets Management 20 percent, Holding Company for Pharmaceuticals (Holdipharma) 10 percent, and Misr Investment and Finance Fund 10 percent.
There are currently 35 firms providing Shariah- compliant insurance services, including nine takaful firms. During the first quarter of 2017, takaful firms grabbed nearly 9 percent of Egypt’s insurance market share.