Egypt’s 4-month paid insurance claims leap 9.7%

Paid insurance claims in Egypt leaped by 29.7 per cent, year-on-year, to LE13.67 billion on the January-April period, compared to LE10.5 billion on the same period a year ago, according to data from the Financial Regulatory Authority (FRA).

Paid non-life claims jumped by 78 per cent to LE6.6 billion on the January-April period, up from LE3.7 billion in the same period a year earlier.  Paid life claims added 3.1 per cent, year-on-year, to LE7.04 billion on the January-April period, up from LE6.8 billion on the same period in 2023, according to FRA data.

Paid commercial claims surged by 28.6 per cent, year-on-year, to LE13.3 billion on the January-April period, against LE9.6 billion on the same period a year earlier.

Takaful claims rose by 40.3 per cent, year-on-year, to LE1.33 billion on the January-April period, compared to LE953 million on the corresponding period in 2023, according to FRA data.

Premiums leap 24.6%

Premiums jumped by 24.6 per cent, year-on-year, to LE28.6 billion on the January-April period, up from LE22.9 billion on the same period a year earlier, according to FRRA data.

Commercial premiums rose by 21.1 per cent, year-on-year, to LE25.05 billion between January and April, compared to LE20.6 billion on the same period in 2023.

Takaful premiums surged by 56.8 per cent, year-on-year, to LE3.5 billion on the January-April period, against LE2.3 billion on the same period a year earlier, according to FRA data.

Global sukuk issuances hit $91.9b in H1

Global sukuk issuances reached $91.9 billion over the first half (H1) of 2024, up slightly from last year’s $91.3 billion, S&P Global Ratings said. The agency is maintaining its global sukuk issuance forecast at about $160 billion-$170 billion following the market’s good performance over the first half of 2024. 

But a notable difference is the 23.8 per cent increase in foreign currency issuances, which reached $32.7 billion by June 30, 2024, up from $26.4 billion a year earlier. The main contributors to this increase were issuers from Saudi Arabia, United Arab Emirates (UAE), Oman, Malaysia, and Kuwait.

“Improved visibility on the medium-term trajectory of interest rates has benefited foreign currency-denominated sukuk issuance-we expect the US Federal Reserve to start cutting rates in December 2024,” said an S&P Global Ratings report, a copy of which was made available to the Egyptian Mail.

“Simultaneously, high financing needs in core Islamic finance countries explain the increased issuance, which is notably funding an ongoing economic transformation program in Saudi Arabia and strong growth in the UAE’s non-oil economy,” it said.

Adopting the Accounting and Auditing Organisation for Islamic Financial Institutions’ (AAOIFI’s) Sharia Standard 62 could reduce issuance volumes over the medium term if it materially alters the nature and risk characteristics of sukuk instruments.

“We expect it will reach about $160 billion-$170 billion by the end of the year thanks to higher financing needs in some core Islamic finance countries and improved visibility on rate trajectory. Geopolitical risk has not yet dragged on issuance but could pose some downside risk, though under our base-case scenario we do not expect significant disruption,” the report added.