African Reinsurance’s investment portfolio in Egypt currently stands at US$25 million, equivalent to 195.7 million Egyptian pounds, its regional director Omar Gouda said Wednesday.
Deposits capture the lion’s share in Africa Re’s investments in Egypt, Gouda added.
In fact, Africa Re is considering expanding into the stock market activity in Egypt. It might allocate some of its investments in Egypt in order to buy some shares, notably in mutual funds traded in the Egyptian bourse, Amwal Al Ghad has quoted Gouda as saying.
Africa Re had previously planned to list its shares in some African stock markets such as Egypt, Morocco, and South Africa. Yet, the global financial crisis has driven the African reinsurer to reconsider such plans and wait for the perfect time to carry out them, Gouda noted.
The African Reinsurance Corporation (Africa Re) was established on 24 February, 1976 in Yaounde, Cameroon following a recommendation of the African Development Bank (AfDB), with the aim of reducing the outflow of foreign exchange from the continent by retaining a substantial proportion of the reinsurance premiums generated therein.
In June, A.M. Best affirmed the financial strength rating of A- (Excellent) and the issuer credit rating of “a-” of African Reinsurance Corporation. The outlook for both ratings was positive.
