Egyptian insurance sector set for privatisation

Cairo: Egypt plans to merge state insurance companies, to create one of the five biggest insurance firms in the region, and then prepare the new company for privatisation, Investment Minister Mahmoud Mohieldin said.

The companies include Misr Insurance, Chark Insurance and National Insurance, which between them control 70 per cent of an industry which holds net investments of about 18.7 billion Egyptian pounds ($3.3 billion).

"The merger process will end in March 2008, giving us a giant company through which we aim to have a regional significant presence through branching out," Mohieddin said.

The merger needs approval by general assembly meetings of the companies in September. The assemblies are all controlled by the government. Then there will be a six-month phase to decide details.

Mohieldin said the government would offer a stake in the new company on the stock exchange.