Insurers to allocate additional EGP 1.2bn reserves under new accounting standards, Omran

Implementing the new accounting standard no. 47 for financial instruments, compliant with IFRS9, will result in increasing the reserves of insurance companies by about 1.2 billion Egyptian pounds, the Chairman of the Financial Regulatory Authority, Mohamed Omran, said.

Egyptian Financial Regulatory Authority obliged insurance companies to allocate reserves against risks of implementing the new accounting standards, equivalent to 1 percent of their assets, from their net profits after taxes for fiscal year 2019/2020.

The increased reserves will protect insurers against any potential risks and enhance their financial positions in accordance with international best practices.