OREANDA-NEWS. SOGAZ Insurance obtained a permit to carry on reinsurance business in the Arab Republic of Egypt as a foreign reinsurer. The respective permit was issued by the Egyptian Financial Supervision Authority (EFSA). The Company intends to use it for expanding its incoming and outgoing reinsurance business in this region.

"This permit authorizes us to work directly with insurance and reinsurance companies of Egypt", said Dmitry Talaev, SOGAZ CEO and Member of the Board. "Direct collaboration is definitely more convenient for us as well as for our partners and more profitable for our clients as it reduces their insurance coverage costs."

According to him, SOGAZ plans to expand cooperation with Egyptian insurers in incoming and outgoing reinsurance. In particular, this refers to the coverage of interests of Russian companies operating in Egypt, as well as joint projects. The Company is mostly interested in insurance of energy risks, property and construction/erection risks.

"EFSA permit was issued for 2016. Then we are going to renew it on a regular basis", said Dmitry Talaev, also noting that SOGAZ already had successful experience of cooperation with Misr Insurance company, the major insurer of Egypt.

The size of the Egyptian insurance market is approximately $2 billion, ranking second only to Morocco in North Africa. Over the recent nine years, the average annual growth of the insurance sector of the country was 14.6%. According to EFSA, there are 19 insurance companies in Property and Liability business (Non-Life) and 14 companies in Life Insurance on the Egyptian market.   

"Taken as a whole, the Egyptian insurance market has a significant potential being unused so far. New large-scale infrastructure projects create good opportunities for its development", said Dmitry Talaev. "Today, MENA region accounts for 4% of SOGAZ incoming insurance business. We expect to increase it by one-and-a-half to two times in the next two years."

Increasing the foreign reinsurance volumes and protecting of property interests of key clients and partners, all over the world, are among the main strategic objectives of SOGAZ. Currently, the geography of SOGAZ reinsurance business includes more than 70 countries worldwide.

44% of the total amount of incoming reinsurance premiums comes from European countries, while almost the same share comes from Russia and CIS, 6% from Asia, and 4% from Latin America. The Company has accreditations in Brazil, Venezuela, Ecuador, Bolivia, India, etc. Besides, SOGAZ is the only Russian company that was registered as a foreign reinsurer in China at the end of December last year.