New insurance regulation as of 1 January 2015

The Egyptian authorities are publishing a new regulation governing reinsurance. Under the new requirements, which will be in effect as of 1 January 2015, reinsurers allowed to take part in local business are required to obtain a rating from at least one of the four major agencies approved by the authorities (S&P, A.M. Best, Fitch, Moody's).

A BBB+ rating threshold from S & P or equivalent is required. Reinsurers having no rating are required to have a minimum capital of 60 million USD. The solvency requirements and technical funding will in this case be observed.

The list of selected reinsurers will be updated regularly. Class-based business transfer limits will be imposed. Finally, no reinsurer may hold more than 65% of the insurance portfolio of a ceding company.