Crescent Egypt Insurance Broking is boosting its business in the local market, eyeing increasing its market share in 2018 as the insurer aims to double its premiums next year.
“We are targeting EGP 150m in premiums next year against EGP 75m in the current year,” Ahmed Hassan, CEO, told Daily News Egypt Wednesday on the sidelines of inaugurating a new branch of the company in Suez governate.
Crescent Egypt is a subsidiary of Crescent Global Holding, a leading international Lloyds’ accredited insurance company.
The company first entered the Egyptian insurance market in 2010, according to its website.
“The new branch is targeting EGP 15m premiums next year. We have chosen China-Egypt Economic and Trade Cooperation Zone as a new hub for our operation in Suez governate, as we are targeting Chinese companies to be our new customers,” Hassan explained.
China-Egypt Economic and Trade Cooperation Zone was built 8 years ago in Egypt and includes about 75 Chinese companies.
“We are so optimistic about our growth potential in the Egyptian market,” Hassan concluded.
A recent report issued by Oxford Business Group expected Egypt’s insurance market to outperform different economic sectors in the coming period.
The report said, however, that its long history of insurance and recent decades have seen the country fall behind emerging insurance markets elsewhere in MENA.
“Egypt’s share of total premiums stood at only 4% of the regional total, compared to 16% for the UAE and 13% for Saudi Arabia. Insurance penetration meanwhile is estimated to be 1.2%—just under the emerging market average of 1.3% and far below the global of average of 6.2%—while insurance density is just $22.30 per person. Given this relatively low base, therefore, Egypt’s insurers are well positioned to grow their balance sheets going forward,” the report said.
Despite the economic turbulence of the past five years, the insurance industry has shown strong growth in Egypt.
Total premiums have expanded consistently since the 2010/11 financial year, posting the highest growth in 2012/13, when the industry’s aggregate premium grew by 14.2%.