Risk Management and Credit Rating
Misr Insurance Holding Company places special emphasis on activating the Enterprise Risk Management (ERM) system in order to establish high standards for risk management and develop a shared understanding of risk language across all levels of management and business units. This enables the company and its subsidiaries to effectively manage risks, ensuring financial soundness and the ability to meet obligations to all relevant stakeholders.
Efforts are coordinated to formulate a comprehensive view of risk levels in order to support the decision-making process by senior management. This is achieved through risk management departments and committees in the subsidiary insurance companies. The design and implementation of the risk management framework, as well as the development of a risk management strategy and policy, have been completed. This includes criteria for identifying and assessing risks in the subsidiary insurance companies, which were developed by international consulting experts. Additionally, quantitative risk measurement methods have been developed through Early Warning Indicators (EWI) and the Internal Capital Model for the two subsidiary insurance companies. The application of the BCAR capital model by the credit rating agency A.M. Best has been implemented for Misr Insurance Holding Company and its subsidiaries, confirming the financial solvency strength of the company and its subsidiaries.
As part of the coordination and integration within the risk management system of the subsidiary companies, the Risk Management Department of Misr Insurance Holding Company has formulated a unified charter for the Risk Management Committees in the subsidiary insurance companies. This charter serves as a guide in developing the specific charters for each company.
Risk management in our companies is an essential component of their strategic management. It encompasses a set of organized procedures followed by companies to address the risks associated with their activities. The goal is to achieve sustainable benefits from each activity and from the portfolio of all activities. Companies focus on identifying and addressing these risks, aiming to add the maximum sustainable value to all company activities.
Risk management helps understand the potential positive and negative aspects of all factors that may affect the company. It increases the likelihood of success and reduces both the chances of failure and uncertainty in achieving the overall objectives of the company. Subsequently, specialized risk management units are established within the organizational structures of Egypt Insurance Holding Company and its subsidiaries.
The Risk Management System in the Companies:
Gathering and analyzing necessary data and information about the company's internal and external environment to identify the risks facing the company.
Discovering, identifying, and characterizing current and future risks facing the company based on available data and information, classifying them, and understanding the relationships between them.
Determining the levels of these risks using available scientific methods to measure risk, considering the anticipated magnitude of the resulting losses and their impact on the company's financial position and capabilities.
Identifying the best methods to address and deal with these risks, prioritizing actions, and developing the necessary executive programs to confront the risks.
Reviewing and evaluating the quality of the policies and executive programs established to address these risks, working on their development in light of the surrounding challenges and any market developments through continuous analysis of the internal and external environment through which the company operates.
Establishing necessary corrective measures to enhance the company's policies and executive programs for managing these risks.
Contributing to raising awareness about the types of risks facing the company and the methods to confront them
The credit rating of subsidiary insurance companies
Misr Insurance Holding Company sets a goal for its subsidiary companies to achieve a strong credit rating as a top priority within its strategic objectives. This aligns with the company's ongoing effort to ensure that our subsidiaries remain a strong partner, providing the highest levels of security to meet obligations towards all relevant stakeholders, in line with globally recognized standards.
Misr Insurance Holding Company places the objective of securing strong credit ratings for its subsidiary companies at the forefront of its strategic priorities. This reflects the Company’s ongoing commitment to ensuring that its subsidiaries remain strong partners, providing the highest levels of security in meeting obligations toward all stakeholders, in line with internationally recognized standards.
AM Best
The subsidiary insurance companies, Misr Insurance Company and Misr Life Insurance Company, have successfully obtained a credit rating from the global rating agency AM Best at B++ (Financial Strength Rating – FSR) and bbb (Long-Term Issuer Credit Rating – ICR), with a Stable Outlook for both ratings, for the tenth consecutive year.
AM Best also assigned the National Scale Rating (NSR) of aaa.EG (Exceptional) to both companies, reflecting the strong financial solidity of the two leading subsidiaries in the Egyptian insurance market.
The agency’s report indicated that it conducted a comprehensive review of the financial data of both companies, as well as the parent company, Misr Insurance Holding Company. The review included an in-depth assessment of all financial and technical aspects, key performance indicators, technical provisions, reinsurance programs, and investments
In addition, Misr Insurance Company obtained the National Insurer Financial Strength (IFS) rating from Fitch Ratings at AAA(egy) with a Stable Outlook, reflecting the Company’s strong financial position and its ability to meet its obligations toward all stakeholders.
Here are the links to the reports issued by the rating agencies:
AMBEST
Classification of Misr Insurance Company
https://news.ambest.com/PR/PressContent.aspx?altsrc=108&refnum=35962
Classification of Misr Life Insurance Company
https://news.ambest.com/PR/PressContent.aspx?altsrc=108&refnum=35961
FITCH Ratings
Classification of Misr Insurance Company
https://www.fitchratings.com/entity/misr-insurance-company-96983165
Classification of Misr Life Insurance Company