Cairo – Mubasher: Egypt’s insurance companies will be required to allocate reserves against risks of implementing the new accounting standards, equivalent to 1% of their assets, from their net profits after taxes for fiscal year 2019/2020.
Implementing the new accounting standard no. 47 for financial instruments, compliant with IFRS9, will result in increasing the reserves of insurance companies by about EGP 1.2 billion, the Chairman of the Financial Regulatory Authority, Mohamed Omran, said in a statement on Sunday.
The increased reserves will protect insurers against any potential risks and enhance their financial positions in accordance with international best practices.
