Arab Finance: Egypt’s private insurance fund assets increased 21.7% to EGP 238.2 billion at the end of 2025, compared with EGP 195.7 billion a year earlier, according to the Financial Regulatory Authority’s (FRA) annual performance report.
Investments grew 25.5% to EGP 210.9 billion from EGP 168.1 billion in 2024. Net investment returns reached EGP 40.6 billion, compared with approximately EGP 31.4 billion, with the FRA reporting growth of 28.9%.
The funds’ reserves also expanded to approximately EGP 226 billion from EGP 184.7 billion, a reported increase of 22.3%. The FRA said the increase strengthened their financial base and capacity to meet obligations to members under each fund’s rules.
Investment holdings were concentrated in banking instruments and government debt. Government-guaranteed securities amounted to approximately EGP 88.27 billion, while deposits, savings certificates, and investment accounts totaled EGP 88.05 billion.
Other holdings included EGP 11.49 billion in fixed-income mutual fund units and EGP 4.46 billion in shares traded on the Egyptian Exchange (EGX), alongside EGP 7.49 billion in other investments.
The FRA linked the development of investment resources to the need for efficient management that generates returns to cover future obligations. It said its regulatory decisions encourage prudent investment of fund savings to maintain financial stability, protect subscribers’ interests, and improve the benefits available to them.
On the membership side, private insurance funds served approximately 4.21 million members at the end of 2025. The number of active funds stood at 665, down from 671 in 2024. A further 86 funds were undergoing liquidation, bringing the combined total to 751.
Contributions, including payments from employers and sponsoring entities, rose to EGP 23.4 billion from EGP 18.6 billion in 2024. The FRA put the annual growth rate at 25.1%.
Insurance benefits paid to members increased 11.7% to EGP 20 billion, compared with EGP 17.9 billion a year earlier. Retirement benefits accounted for the largest share at EGP 13.45 billion, followed by periodic pension payments of EGP 2.81 billion and death benefits of EGP 1.22 billion.
The report highlighted the funds’ role in social protection, providing financial benefits to employees and members upon retirement, termination of membership, or other qualifying events specified in each fund’s rules. It also outlined their contribution to accumulating savings and directing them into investments that support economic activity and deepen the capital market and broader financial sector.
FRA Executive Chairman Islam Azzam said the figures demonstrated the growing economic importance of private insurance funds as channels for collecting and investing long-term savings. He said they support the financial stability of members and their families while supplying capital to debt markets, the banking sector, and the capital market.
Azzam called for continued improvements in supervision, management, governance, and investment efficiency under the Unified Insurance Law No. 155 of 2024 and the FRA’s regulatory decisions. These measures should balance the growth of members’ savings with the funds’ ability to pay benefits when due, he said.
The annual report reviews financial and operational indicators, industry developments, and trends in contributions, assets, investments, and benefit payments during 2025. The FRA said its publication supports efforts to make data on non-banking financial activities more accessible, strengthen transparency, and raise awareness of their performance, helping assess and develop markets and increase their contribution to the national economy.
