Misr Insurance Holding targets healthcare and microfinance
Basil El Heni, Chairman of Misr Insurance Holding Group, reviewed the features of the company’s investment plan during the current period and the economic sectors it is targeting, including health and microfinance.
The interview was conducted by Hazem Sharif, editor-in-chief of Al-Mal newspaper, during the second day of the CEO conference organized by Al-Mal GTM, a subsidiary of Al-Mal newspaper.
Basil El Heny, the head of Misr Insurance Holding Group, revealed that a protocol has been signed with the Egyptian State Fund, according to which the latter will undertake – through its sub-fund – to promote the offer of 25% of shares in Misr Life Insurance Company, linked to the former.
Al-Hinni added that the promotion process will be for external investors, with the possibility of directly selling that share without waiting for a public offer on the stock exchange.
And he believed that the company “Misr Life Insurance” had long been ready for an offer on the stock exchange, but the market conditions could not realize it due to the passage of the world through the Corona pandemic and the Russian-Ukrainian war, etc., which delayed the offer process during that period.
He explained that the total investments of the subsidiaries of Misr Insurance Holding Group are currently close to 90 billion pounds, and it is considered the largest non-banking financial institution.
Al-Haini confirmed that the investment volume of the group and its subsidiaries on the stock exchange is 10 billion pounds, of which 7 billion pounds is managed by the company itself, and 3 billion pounds is managed by external portfolio managers, who are engaged to activate the investment portfolio on the stock exchange.
He added that part of the portfolio is managed directly without relying on external managers, and this direction was initiated by the company Misr životno osiguranje, which aimed to strengthen its portfolio by direct investment on the stock market.
He revealed that his company has exited many investments over the past two years as part of a continuous review of the size of its current investments, their feasibility and returns, while it has now contributed around EGP 800 million in direct investment.
He explained that the last companies he founded and to which the group contributes are “Misr Takaful Life Insurance” and “Misr Finance” for financial leasing, and before them “Misr Takaful Insurance – Assets and Liabilities”.
He revealed that some subsidiary companies have received new licenses, including Misr Finance, which received two licenses for financial leasing and factoring, as well as Misr Takaful Insurance, which received a license about two weeks ago, bringing the number of related parties to 9.
Al-Henni referred to the company’s plan to acquire a stake in a healthcare company operating under a third-party TPA system.
Here, Hazem Sharif intervened with the question of what other activities the insurance holding intends to penetrate in the coming period, and does this include consumer financing and microfinancing?
In response, Al-Hinni revealed the group’s plan to enter the field of microfinance activities, after major progress has been made, and as part of its application for licenses from the Financial Supervisory Authority.
He pointed out that his company has not yet decided on participation in the consumer financing business and confirmed that his company is close to obtaining approval to add the real estate financing business to its financial leasing subsidiary Misr Finance.
Hazem Sharif asked: Are there any new projects that are expected to be entered into in the coming period, which relate to sectors such as health, education or others?
El Heny said that the group is already studying the possibility of contributing to the investment fund in the health industry, and EGP 100 million will be invested in it initially.
He added that his company pumped 125 million pounds to invest in a fund specialized in education, but a study is underway to restructure this project in cooperation with other partners represented in Banque Misr and Sovereign Fund in the light of different market components. and high estimates.
It is worth noting that last year a signing ceremony was held for the establishment of the “Lighthouse for Educational Investments” platform, established by a consortium that includes the Sovereign Fund of Egypt, Banque Misr, Misr Insurance Holding Group and the Suez Canal Bank, with a target capital of 1.75 billion pounds.
Al-Hinni said that the Misr Insurance Holding group is interested in investing in the health sector, explaining that the group previously conducted three experiments in the same field, but they were not successful – he said.
He emphasized that the group continues to invest in targeted activities, including financial services, and Misr osiguranje holding has made great strides in this field, saying: The group has contributions in several banks, and we are studying their consolidation.
He revealed that talks have been held with several entities to manage investments in healthcare, and the group intends to pump at least £100 million into the activity, noting that Misr Insurance Holding has pumped about £125 million into the education sector, and that has the appetite to invest more money .
He hinted that the choice of the most suitable alternatives for unifying the group’s shares in banks, whether it is the establishment of a company or some other mechanism, is still premature, especially since it is a new idea that appeared on the discussion table about two to three weeks ago .
He added that Misr Insurance Holding has stakes in more than one bank, including Arab International Banking Company (SAIB), Egy Bank, Med Bank, Al Baraka Bank and others, and most of them have seats on the group’s board of directors.
He pointed out that in the next phase the group is considering increasing its share in a bank, but he refused to name it in the context of diversifying the group’s investments and maximizing returns on them.
On the other hand, he pointed out that the “Old Age Pension” product issued by its subsidiary Misr životno osiguranje through branches of the National Bank is good and suitable for retirement, as it gives the user an additional pension after retirement. year, pointing out that there is a similar product that is also sold through branches of the Agricultural Bank of Egypt.
It is worth noting that the “Bakrah Pension” policy offered by Misr Life Insurance Company through the branches of the National Bank is available to persons aged 18 to 59 years, and the minimum period for the policy is, and the pension is paid as a lump sum or through a fixed monthly pension paid for the period of 10 or 15 years. This is when a person reaches the contracted age (50, 55, 60 or 65 years).
The pension is also paid in the event of the insured’s death or total disability, and the pension is also paid in the event of the insured’s death or total disability before reaching maturity. contracts or guaranteed payments are calculated according to the insured’s age on the day of payment of the first installment and the maturity date specified in the policy. The customer can also receive a maximum of 4 documents for each maturity age of 50, 55 years. , 60 or 65 years, while a medical examination is not required For “tomorrow’s pension” a document for all works and insurance amounts.
It is important to note that (Misr Takaful Insurance – Life) was established with the contribution of each of Misr Insurance Holding Company, Misr Life Insurance Company, Misr Insurance Company, National Bank of Egypt and Banque Misr, with a capital of 150 million pounds with the aim of effective participation and adding new value to the Egyptian insurance sector, in general, and Takaful insurance in particular.
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