·       L.E. 6.3 Bl in Insurance Premiums, with 7% Increase

·       Investments Reach L.E. 312 B

·       17,000 New Companies under Social Insurance Umbrella, A Slight Drop Compared to Last year

Insurance premium proceeds from government insurance funds in the public and private sectors rose by 7% during the period from July to September 2010 (compared to the same period of the fiscal year 2009/2010), reaching L.E. 6.3 b. Government funds alone reached L.E. 3.3 b, while public and private sector funds reached L.E. 3 b, said dr. Youssef Boutros Ghali, the Minister of Finance.    

Pensions disbursed in both categories rose by 17.7%, after applying the low pensions readjustment mechanism, under the new Social Insurance Law, which is expected to be fully applied in 2012. Disbursed pensions totaled L.E. 11.5 b; including L.E. 6.5 b the government sector and L.E. 5 b in the public and private business sectors, he said.

Total fund resources rose by 13.5% to reach L.E. 10.8 b, of which L.E. 5.8 b come from the government sector, and 5 L.E. b from the other sectors. This is attributed to higher fund investments in the current fiscal year, compared to last year, with pension investments reaching L.E. 312 b in September 2010. Moreover, direct investment revenues, that pension funds are seeking to maximize, have risen by 4% compared to the last fiscal year, he noted.

The recent global crisis has affected business community, as the number of new establishments joining the social insurance system in the public and private sectors has slightly dropped to 17,000, (a 5.6% decrease compared to  the same period in the previous fiscal year), said Assistant Minister of Finance Dr. Mohammed Moiet.

The first quarter of the current fiscal year witnessed a considerable increase for both funds, at a growth rate of 8.9%, totaling L.E. 10.3 b, including L.E. 5.2 b in the government sector and L.E. 5.1 b in the public and private business sectors. Reports have attributed the rise to the steady increase in paid insurance benefits, he explained.

On the other hand, Dr. Moiet noted that plans for the modernization of the social insurance sector were forging ahead, especially with regard to infrastructure. Modernization of the informatics sector has already been completed. Current insurance offices have been developed, while more offices are being established across the country. A larger staff will be assigned to expand the reach of the pension home delivery system, he added.

(Source: Ministry of Finance)