Circular Letter No. 16 of 2021 Regarding General Assemblies of Insurance Companies Approving Financial Statements for the Fiscal Year Ending June 30, 2021

FINANCIAL REGULATORY AUTHORITY
Deputy Chairman of the Authority

Circular Letter No. (16) of 2021 dated 22/8/2021

Regarding the General Assemblies of Insurance Companies for Approving Financial Statements for the Fiscal Year Ending 30/6/2021

In light of the conclusion of the fiscal year on 30/6/2021, and with the convening of general assemblies for insurance companies to approve annual financial statements approaching.

In line with the Authority's efforts to implement the provisions of Articles Nos. (37, 49, 50, 53) of the aforementioned Insurance Supervision and Control Law, as well as the articles of the Executive Regulation, decisions, and regulations issued pursuant thereto, particularly Articles Nos. (27 bis 1, 31, 34, 40, 44, 45) of the Executive Regulation, and Article Ten of the Authority's Board of Directors Decision No. (23) of 2019 regarding the issuance of regulations to govern Takaful insurance for application in the Egyptian insurance market.

Accordingly, the Authority draws the attention of insurance and reinsurance companies, as well as the cooperative insurance association, when preparing financial statements for the fiscal year ending 30/6/2021 and preparing to convene general assemblies, to the necessity of complying with the following:

1. Excluding distributable net profits for 2021 from retained or reserved profits from previous years, which remain fully reserved until new instructions are issued by the Authority.
2. Confirming the non-use of the risk reserve for the effects of applying Egyptian Accounting Standard (EAS) No. (47) Financial Instruments, established on 30/6/2020, in accordance with the Authority's Board of Directors Decision No. (162) issued on 30/9/2020 regarding the establishment of a reserve to face risks arising from applying EAS No. (47) Financial Instruments on insurance companies.
3. Submitting financial data, accounts, disclosures, and annual forms according to the appendices and forms issued by the Minister of Economy and Foreign Trade Decision No. (621) of 2001 on CD, which must match the approved financial statements, accompanied by a signed hard copy from the company's chairman of the board and its chief financial officer, and an actuary for actuarial forms, at least one month prior to the scheduled date of the general assembly.

Smart Village, Building 136 - B, Giza, Egypt
Postal Code: 12577
Tel: (002) 35345350 - Fax: (002) 35370036 www.FRA.gov.eg

4. Submitting an annual report issued by the company's auditor, complying with Article (49) of Law No. 10 of 1981 and Article (44) of the Executive Regulation thereof, at least one month prior to the scheduled date of the general assembly.
5. Notifying the Authority via email at Financial.statements@fra.gov.eg with a hard copy of the approved annual financial statements and disclosures for 30/6/2021, accompanied by the company's board of directors report and external auditor's report, at least fifteen days prior to the scheduled date of the general assembly.
6. Submitting an actuarial report signed by the company's actuary, certifying that technical provisions for life insurance operations and declared/proposed profit distribution ratios to policyholders have been estimated and determined according to approved technical bases, as well as the adequacy of technical provisions and profitability analysis for property and liability insurance operations, accompanied by a CD containing all financial data relied upon by the actuary in preparing said report, at least one month prior to the scheduled date of the general assembly.
7. Submitting a certified copy of every report submitted to shareholders, policyholders, or those entitled thereto regarding the company's operations upon issuance and at least fifteen days prior to the scheduled date of the general assembly.
8. Submitting an annual report on the company's investment policy and its amendments during the year, along with a certificate from the bank where its earmarked funds are deposited confirming compliance with Article (31) of the Executive Regulation of Law No. 10 of 1981, as well as records of earmarked funds, at least one month prior to the scheduled date of the general assembly.
9. Submitting a copy of the annual Sharia Supervisory Board report, which must include its Sharia opinion on the surplus designated for distribution to participants this year, at least one month prior to the scheduled date of the general assembly for Takaful insurance companies, in accordance with Article Ten of the Authority's Board of Directors Decision No. (23) dated 24/2/2019.
10. Notifying the Authority of the date and scheduled time for convening the general assembly, along with its agenda, at least fifteen days prior to the scheduled date, and ensuring that the aforementioned agenda includes a separate item for presenting the Authority's report on annual financial statements sent to the company and/or what the Authority decides to present to the general assembly.

Dated: 22/8/2021
Chairman of the Authority / Advisor / Rida Abdel Moeity

Smart Village, Building 136 - B, Giza, Egypt
Postal Code: 12577
Tel: (002) 35345350 - Fax: (002) 35370036 www.FRA.gov.eg