Africa - Q4 2012


Insurance Risk/Reward Ratings

Table: Egypt's Insurance Risk/Reward Ratings
Data Sub-rating score, out of 10 Rating score, out of 100
Rewards 42. 1
Industry rewards 31. 3
- Non-life 30.0
Non-life premiums, 2012, US$mn1,078.83.0
Non-life premium increase, 2012-2016, US$mn1,045.95.0
Non-life penetration, 2012,%0.41.0
Measure of openness4.04.0
- Life 32 . 5
Life premiums, 2012, US$mn1,259.43.0
Life premium increase, 2012-2016, US$mn621.14.0
Life penetration, 2012,%0.51.0
Measure of openness4.04.0
Country rewards 58. 3
GDP per capita, 2012, US$3,208.34.0
Active population, 2012, % of total63.67.0
Tax regime28.42.8
GDP volatility1.58.0
Financial infrastructure72.87.3
Risks 50.8
Regulatory framework 60.0
Regulatory framework and development6.06.0
Regulatory framework and competitive landscape6.06.0
Country risks 44. 7
Long-term financial risk39.23.9
Long-term external risk66.76.7
Long-term policy continuity50.05.0
Legal framework34.43.4
Bureaucracy29.83.0
Insurance Risk/Reward Rating 44. 7
Source: BMI

Since 2008, we have been taking a much more systematic approach to assessing the current and potential conditions of the insurance sectors in each of the countries surveyed by BMI. We have calculated the Insurance Risk/Reward Ratings, which take into account objective measures of the current state and long-term potential of both the non-life and the life segments. It also takes into account an assessment of the openness of each segment to new entrants, and economic conditions. Collectively, these measures enable an objective assessment of the limits to potential returns across all countries and over a period of time. The ratings also incorporate objective assessment of the risks to the realisation of returns, based on BMI's Country Risk ratings. It embodies a subjective assessment of the impact of the regulatory regime on the development and the competitive landscape of the insurance sector.

Table: Middle East And Africa Insurance Risk/Reward Ratings
Industry Rewards Industry Rewards - Non-Life Industry Rewards - Life Country Rewards Rewards Regulatory Framework Country Risks Risks Insurance RRR Rank
South Africa71.2567.5075.0073.5972.1865.0069.9067.9470.911
Israel57.5055.0060.0073.5463.9180.0074.9976.9967.842
Bahrain33.7535.0032.5074.5850.0885.0061.4370.8656.313
UAE40.0050.0030.0069.6051.8470.0059.7963.8755.454
Saudi Arabia33.7547.5020.0077.3651.1960.0062.2961.3754.255
Oman23.7530.0017.5073.6443.7065.0063.3364.0049.796
Jordan22.5030.0015.0078.0044.7070.0048.2356.9448.377
Morocco28.7537.5020.0059.0140.8570.0050.9058.5446.168
Kuwait15.0020.0010.0074.7338.8950.0068.5161.1145.569
Qatar18.1331.255.0070.2138.9655.0060.6658.4044.7910
Egypt 31.25 30.00 32.50 58.25 42.05 60.00 44.66 50.80 44.67 11
Tunisia21.2530.0012.5060.7737.0655.0045.3049.1840.6912
Kenya25.0030.0020.0047.9034.1645.0039.5941.7536.4413
Nigeria20.0030.0010.0050.8132.3225.0050.2640.1534.6714
Iran25.0035.0015.0051.7135.6820.0037.7730.6634.1815
Algeria17.5025.0010.0044.5428.3150.0043.7846.2733.7016
Libya3.755.002.5042.0019.0530.0031.0030.6022.5217
Scores out of 100, with 100 the best. Source: BMI