Exchange rate fluctuations generate high risk for the insurance companies in Egypt, such as\nbankruptcy and liquidity. This study aims to measure the foreign exchange exposure (FXE)\nfor the life insurance companies in Egypt during the period from 2000-2016. After that, the\nstudy measures the determinants of this exposure. The problem of the study is concerned with\nthe fluctuations of the foreign exchange rate in Egypt, which have a great effect on the\nfinancial performance. Following prior studies (e.g. Lee, 2011 and Ampomah 2012), this\nstudy uses Jorian model to measure the FXE. The results of the study show that the life\ninsurance companies in Egypt were significant to the FXE; the results are robust to the choice\nof model design.
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