Egypt’s FRA requires insurers to invest 5% in equity funds

The Egyptian Financial Regulatory Authority (FRA) has mandated on Monday insurance and reinsurance companies to allocate a minimum of 5 per cent of their free funds to open-ended investment funds that invest in equities listed on The Egyptian Stock Exchange (EGX).

Under the new regulations, companies may, with FRA approval, count direct investments in listed equities within this 5 per cent allocation, provided that investments in a single investment fund do not exceed 5 per cent of the company’s paid-up capital or 15 per cent of the net asset value of the fund, whichever is lower.

The move is part of FRA’s broader efforts to enhance the efficiency of investment operations within the insurance sector while ensuring compliance with governance and risk management principles.

Attribution: Amwal Al Ghad English

Subediting: M. S. Salama