Al Mohandes Insurance Company’s premiums reached EGP 208.2 million in FY 2011/2012, compared to EGP 204.8 million in FY 2010/2011, with an increase of EGP 3.4 million (1.7%).
The life insurance premiums reached EGP 60.7 million in the last fiscal year, up from EGP 57.1 million a year earlier, with an increase of 6.3%.
The net direct non-life insurance premiums registered EGP 141.2 million and the total value of non-life and civil liability insurance premiums including reinsurance and received insurance premiums registered EGP 147.7 million, posting a decline of 0.2% compared to a year earlier. The car insurance sector accounted for EGP 66 million (46.78%) and fire insurance sector accounted for EGP 33.8 million (23.9%) of premiums.
The value of paid compensations and benefits surged to EGP 223.2 million in FY 2011/2012, up from EGP 182.3 million a year earlier with an increase of 22.4%. The value of life insurance compensations and benefits registered EGP 60.4 million and non-life insurance compensations and benefits reached EGP 162.8 million.
The Company paid compensations of 82.5 million to Juhayna Food Industries, EGP 6 million to Awlad Ragab and EGP million to CBC Company.
The surplus insurance reached EGP 23.1 million, compared to EGP 25.5 million, with a retreat of 9.4%. The net income of investments portfolio reached EGP 70.3 million, compared to EGP 68.1 million, with an increase of 3.2%. The policyholders’ equity rose to EGP 624.7 million, compared to EGP 605.8 million, with an increase of 4.8%. The Company achieved net profit of EGP 18.5 million, compared to EGP 22.3 million, with a retreat of 20.6%. The retreat in profit surplus was because of the impairment losses on securities of about EGP 5.6 million.
It is worth mentioning that the Egyptian Financial Supervisory Authority (EFSA) has issued a decree preventing Al Mohandes Insurance Company from conducting life insurance activity, in accordance with the law no. 18 of 2008 which obligates insurance companies to split life insurance activities from non-life insurance activities within two years from the date of issuing the law.
EFSA is withdrawing Al Mohandes’ license of life insurance activities until the company finalizes the procedures of separating the life insurance activities from non-life insurance activities.
