Misr Insurance: Supplemental Car Insurance Premiums Register EGP 660 Mln In FY 2011/12

Misr Insurance Company said supplemental car insurance premiums posted EGP 660 million in FY 2011/2012.

The Company has received 1890 claims of stolen cars since 2011’s revolution, said Ahmed Aboul Enein, head of motor insurance committee at Insurance Federation of Egypt and head of motor insurance sector at Misr Insurance Company.

The compensation value due for these stolen cars is more than EGP 130 million, he added, noting that the Ministry of Finance has paid compensations for owners of about 60 stolen cars.

The Company targets increasing the volume of supplemental car insurance premiums by 10%, or EGP 720 million, in FY 2012/2013 he added.

Supplemental car insurance premiums were achieving about 30% growth before the revolution, but the sector passed through turmoil last year due to the economic and political unrest the country witnessed in 2011. By forming a new cabinet, economy will recover and investments will return back to the Egyptian market, which accordingly will boost the insurance sector, he affirmed.

He added that the decision taken by the motor insurance committee, stating that the customer shall incur either 25% of the value of compensation or a 50% increase in the charges on stolen cars, did not have a direct impact on the financial results in the last fiscal year. However, this decision will affect the financial results of insurance companies in FY 2012/2013, Aboul Enein concluded.