Post Investment and AXA Secure FRA Approval to Establish Egypt’s First Microinsurance Company
Post Investment - the investment arm of Egypt Post - and AXA Egypt have announced that they have received approval from the Board of Directors of the Financial Regulatory Authority (FRA) to establish “Sawa”, the first licensed and specialized microinsurance company in the Arab Republic of Egypt.
The approval comes as part of the FRA’s ongoing efforts to develop the insurance market and enhance financial inclusion, in line with the provisions of the newly enacted Unified Insurance Law and its executive regulations.
This approval represents a key implementation milestone of the strategic partnership announced by the two companies in October 2024 to launch a new insurance entity focused on expanding insurance protection for low-income segments. Following the FRA’s approval, the company will proceed with completing the required regulatory, procedural, and infrastructure arrangements to obtain the final license and officially launch operations in the second quarter of 2026.
Both companies emphasized that the regulation of microinsurance activities reflects the FRA’s pivotal role in advancing Egypt’s insurance sector and enabling innovative business models that contribute to increasing insurance penetration, in line with international best practices and global operating models.
Commenting on the partnership, Dalia El-Baz, Chairperson of Egypt Post, stated that the collaboration aligns with the Authority’s vision of enabling non-banking financial service providers to leverage the nationwide post office branch network. This approach allows for the delivery of an integrated suite of financial services and products that support financial inclusion, including insurance and investment services, while reinforcing the public-private partnership model as a driver of sustainable development goals.
For his part, Ahmed Ali Abdel Rahman, Managing Director and Chief Executive Officer of Post Investment, said that securing the FRA’s first approval to establish a microinsurance company translates Post Investment’s commitment to leadership in the non-banking financial services sector and its role in supporting financial inclusion and economic development.
He added that the partnership with AXA reflects Post Investment’s strategy to leverage global insurance expertise to introduce innovative microinsurance products for individuals and groups. These products will be developed in full compliance with regulatory requirements and by capitalizing on AXA’s international experience and Post Investment’s capabilities. The initiative aims to extend insurance coverage to broader segments of society, particularly those with limited access to traditional financial services. He also noted that Egypt Post will serve as a key distribution partner for Sawa’s products through its extensive network of post offices across cities and villages nationwide, especially in underserved areas.
Meanwhile, Hassan El-Shabrwayshi, Chief Executive Officer of International Markets at AXA, affirmed that the establishment of Sawa marks a strategic step within AXA’s vision to expand inclusive insurance solutions and deliver products tailored to the needs of emerging markets. He highlighted the significant growth potential of Egypt’s microinsurance market, noting that AXA will contribute its global insurance expertise to design simple, flexible products that deliver tangible added value to customers.
It is worth noting that the legislative framework of the Unified Insurance Law No. (155) of 2024 allows for the establishment of specialized microinsurance companies, offering flexibility in developing simplified insurance products, expanding microcredit-linked insurance, and utilizing diverse distribution channels, particularly digital platforms and wide-reaching networks.Post Investment Company, the investment arm of the Egyptian Post, and AXA Egypt, announced the approval of the Board of Directors of the Financial Supervisory Authority to establish SAWA to be the first licensed and specialized company in micro-insurance activity in the Arab Republic of Egypt, within the framework of the efforts of the Financial Supervisory Authority to develop the insurance market and promote financial inclusion in the Egyptian market, and in accordance with the provisions of the new unified insurance law and the executive decisions issued thereunder.
This approval comes as an important executive step within the framework of the strategic partnership announced by the two companies in October 2024 to launch a new insurance entity aimed at expanding the scope of insurance protection for low-income groups. Under this approval, the company will complete the procedural, regulatory and infrastructure requirements required to obtain the final license and launch the company in the second quarter of 2026.
The two companies stressed that the regulation of the micro insurance activity reflects the pivotal role of the Financial Supervisory Authority in the development of the Egyptian insurance market, and the provision of innovative models that contribute to increasing insurance coverage rates, in line with best practices and international business models.
In this context, Ms. Dalia Al-Baz, Chairman of the Board of Directors of Egyptian Post, said, commenting on the partnership between SAWA and the National Postal Authority: "This partnership is in line with the Authority's vision of providing the postal branch network to companies operating in the field of non-banking financial services, allowing the provision of an integrated range of services and products that contribute to achieving financial inclusion, including insurance and investment aspects, and at the same time enhancing the role of the partnership model between the public and private sectors in supporting and achieving sustainable development goals."
For his part, Mr. Ahmed Ali Abdul Rahman, Managing Director and CEO of Al-Boad Investment Company, said: "Obtaining the first approval from the Financial Supervisory Authority for the establishment of a micro-insurance company reflects the efforts of Al-Boad Investment Company in its quest for leadership in the non-bank financial services sector and support for financial inclusion and economic development."
He added that the partnership with "AXA" reflects the direction of Al-Post Investment Company to benefit from international expertise in the field of insurance to provide a range of innovative microinsurance products for individuals and groups, designed in accordance with the approved regulatory controls, and benefiting from the expertise of "AXA" and the capabilities of Post for investment, to contribute to the arrival of insurance protection to expanded segments of society in Egypt, including the least categories of access to financial services, pointing out that the Egyptian Post is a major partner in the distribution system of Sawa products, through post offices deployed in various cities and villages of the Republic, especially in areas that benefit less from traditional financial services.
For his part, Mr. Hassan Al-Shabraoshi, CEO of International Markets at AXA, stressed that the establishment of Sawa represents an important strategic step within AXA's vision to expand comprehensive insurance solutions and provide products that suit the needs of emerging markets, pointing out that the Egyptian market enjoys great growth opportunities in the field of micro insurance, explaining that AXA will contribute its global insurance expertise in the design of simplified and flexible products, and achieve real added value for customers.
It is worth mentioning that the legislative framework of the Unified Insurance Law No. (155) of 2024 allows the establishment of companies specialized in micro insurance, with flexibility in the development of simplified insurance products, and the expansion of insurance related to microloans, in addition to relying on multiple distribution channels, foremost of which are digital channels and widespread networks.