AM Best Affirms Credit Ratings of Misr Life Insurance Company
- June 29, 2026 09:22 AM (EDT)
//BestWire// - AM Best has affirmed the Financial Strength Rating of B++ (Good), the Long-Term Issuer Credit Rating of “bbb” (Good) and the Egypt National Scale Rating (NSR) of aaa.EG (Exceptional) of Misr Life Insurance Company (MLIC) (Egypt). The outlook of these Credit Ratings (ratings) is stable. MLIC is the largest life insurance subsidiary of Misr Insurance Holding Company (MIHC).
The ratings reflect MLIC’s balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management. The ratings also reflect rating enhancement, in the form of a lift, from its parent, MIHC, due to MLIC’s strategic importance to the group.
MLIC’s risk-adjusted capitalisation remained at the strongest level at year-end 31 December 2025, as measured by Best’s Capital Adequacy Ratio (BCAR). AM Best expects MLIC’s BCAR scores to remain at the strongest level, supported by its solid internal capital generation. The balance sheet strength assessment also factors in the company’s considerable amount of soft capital, including discretionary bonus reserves, unrealised gains on real estate assets and the contractual service margin (CSM) under the new Egyptian Accounting Standard No. 50 (EAS 50), which was implemented in 2025. Despite the quality of MLIC’s assets being considered weak, given their concentration in Egypt, AM Best also factors in the company’s foreign currency holdings, which partially offsets the recent devaluations of the local currency.
MLIC continued to demonstrate strong operating performance in 2025, with a return-on-equity (including movements through other comprehensive income) of 28.7%, as calculated by AM Best. The company continues to write profitable business, as demonstrated by the material growth in initially recognised CSM in the first two years of EAS 50 results. Overall operating performance is further supported by strong investment income from its well-diversified portfolio. Furthermore, MLIC has shown resilience in its operations in light of the macroeconomic pressures arising from the recent conflict in the Middle East, with no material impact seen to date.
MLIC holds a leading position in Egypt’s life insurance sector, with a market share of approximately 30%. Management seeks to maintain this position via a number of strategic initiatives, including expanding its distribution partnerships and developing innovative new product offerings such as unit-linked products.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings (BCR), Best’s Performance Assessments (PA), Best’s Preliminary Credit Assessments (PCA) and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.