AM Best Places Ratings of Misr Insurance Company Under Review
A.M. Best Co. has placed the financial strength rating of B++ (Good) and the issuer credit rating of “bbb+” of Misr Insurance Company (Misr) (Egypt) under review with negative implications.
The rating actions follow Misr’s announcement to restructure the group companies operating under Insurance Holding Company (IHC) to comply with regulatory requirements of Egyptian insurance law, which obliges companies to separate life and non life portfolios from 1 July 2010. The restructuring of business entails the transfer of non-life business from National Insurance Company of Egypt (NICE) into Misr, and conversely, life business from Misr into NICE. This is expected to create specialised life and non-life insurance companies under IHC. NICE is expected to be rebranded as Misr Life Insurance Company from 1 July 2010.
In A.M. Best’s view, Misr’s capital position, which decreased during 2009, may be further pressurised following the restructuring. A.M. Best will need to assess



