الهيئة العامة للرقابة المالية

• Companies are now prohibited from investing more than 5% of their allocated funds or 15% of a single fund’s Net Asset Value (NAV)—whichever amount is smaller- into any given fund.
• This decision is designed to diversify insurance companies’ investment options and enhance their liquidity levels.

FRA Board of Directors, chaired by Dr. Mohamed Farid, has issued Resolution No. 123 of 2025. This resolution amends Board Resolution No. 2 of 2025, which governs the rules, controls and ratios for investing insurance and reinsurance companies’ funds. Specifically, it adjusts the maximum limits insurance companies can invest in commodity and metal investment fund units, or any metal-backed certificates or financial instruments traded on Egyptian exchanges.

The Authority has opted to double the maximum investment limit for companies in these commodity and metal-linked instruments, raising it to 10% from the previous 5%.

Furthermore, the resolution specifies that the amount invested in any single investment fund cannot exceed 5% of the total allocated funds, or 15% of that fund’s Net Asset Value (NAV), whichever is lower.

This resolution marks a significant step toward increasing market activity, enhancing liquidity, and strengthening overall stability. It is expected to stimulate greater investment in the stock exchange, making the market deeper and more appealing. Ultimately, this will boost confidence in the insurance market and ensure that insurance company funds are managed to balance maximizing returns with safeguarding policyholder rights.

These measures are a key part of FRA’s ongoing commitment to develop flexible regulatory and legislative frameworks. These frameworks enable companies to invest their funds through diverse channels, thereby boosting investment efficiency and supporting the insurance sector’s financial stability, all in line with strong governance and risk management principles.

Moreover, recent regulatory decisions have mandated that private insurance funds invest a portion of their assets in open-ended investment funds focused on Egyptian-listed stocks. This step bolsters investment strategies within these funds by leveraging management expertise licensed by FRA for efficient fund management and allocation, while also diversifying investment options.

These initiatives align directly with the Unified Insurance Law No. 155 of 2024, the sector’s first comprehensive law, replacing four previous regulations. This new law empowers FRA Board of Directors to establish the rules, controls and procedures governing the sector’s performance. It represents a crucial move in the ongoing efforts to regulate and digitize financial transactions and promote financial technology, which will ultimately expand insurance coverage beneficiaries. The law incorporates global best practices and aligns perfectly with Egypt’s national vision and development goals, particularly in enhancing insurance inclusion.

FRA is working to enhance the insurance sector’s efficiency and effectiveness. It is fully committed to continuously refining legislative and regulatory frameworks and rolling out supportive initiatives and policies. These efforts will boost the insurance market’s overall efficiency, help achieve social protection goals, promote financial sustainability and economic inclusion and ensure everyone has access to essential insurance services.