Regulatory Alerts2013-01-01
Decision No. 92 of 2013
The Financial Regulatory Authority issued Decision No. 92 of 2013 to amend the 1998 Egyptian Insurance Regulatory Authority guidelines regarding approved credit rating agencies for insurance and reinsurance firms. The decision mandates that only A.M. Best (B+), Standard & Poor’s (BBB), Fitch (BBB), and Moody’s (BBB) ratings will be accepted by the Authority. Additionally, it establishes a minimum USD 50 million shareholders' equity requirement for unrated foreign reinsurance companies, effective January 1, 2014.
Decision No. (92) Pursuant to Article 24 of the Executive Regulations of Law No. 10 of 1981 concerning Supervision and Control of Insurance, the Board of Directors of the Financial Regulatory Authority decided to amend the guidelines issued by the Board of Directors of the Egyptian Insurance Regulatory Authority in 1998, stipulating that the credit rating agencies whose reports the Authority accepts regarding insurance and reinsurance companies shall be as follows:
- A.M. Best Company (B+)
- Standard & Poor’s Corporation (BBB)
- Fitch (BBB)
- Moody’s (BBB) The minimum shareholders' equity for an unrated foreign reinsurance company shall not be less than USD 50 million, and this amendment shall take effect from 1/1/2014.