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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's subsidiary companies, "Misr Insurance Company" and "Misr Life Insurance Company," have successfully obtained a credit rating from the global rating agency A.M. Best. They received a financial strength rating (FSR) of ++B and an issuer credit rating (ICR) of bbb, both with a "Stable" outlook. This reaffirms the strong financial stability of the leading subsidiary insurance companies in the Egyptian insurance market.

On 04/10/2023, AM Best Company fixed the credit rating of Misr Insurance Company and Misr Life Insurance Company at the level of B++ for the FSR financial rating and bbb for the ICR credit rating, with a “stable” future outlook for both ratings. This is confirmation of the strong financial solvency of insurance companies. The rating agency’s report was issued after reviewing the data of the two insurance companies and the parent company, “Misr Insurance Holding Company,” during which a detailed study was conducted of all financial and technical aspects, key performance indicators, technical allocations, reinsurance programs, and investments.

AM Best has assigned the local rating (NSR) aaa.EG (Exceptional) to both Misr Insurance Company and Misr Life Insurance Company and the outlook for these credit ratings is Stable.

The rating agency's report was issued after a thorough review of the financial and technical data of the insurance companies and the parent company, "Misr Insurance Holding Company." The review included a detailed examination of all financial aspects, key performance indicators, technical provisions, reinsurance programs, and investments.

Misr Insurance Company has succeeded in obtaining a local Financial Strength Rating (IFS) from Fitch Ratings at the level of AA+ (egy), which reflects the company's strong financial stability.

Here are the links to the reports issued by the rating agencies:
AMBEST

Classification of Misr Insurance Company

https://news.ambest.com/newscontent.aspx?refnum=253050&altsrc=23

Classification of Misr Life Insurance Company

https://news.ambest.com/newscontent.aspx?refnum=253051&altsrc=23

FITCH Ratings

Classification of Misr Insurance Company

https://www.fitchratings.com/entity/misr-insurance-company-96983165