“In line with the emphasis of the Central Insurance of Iran and the High Council of Insurance, Iran Insurance Company is to completely separate the portfolio of life insurance and will establish this new complex [with independent and unique characteristics in technical, financial, investment, IT and other areas] with sound investments,” Mohammad Zahednia, the head of IIC’s Department of Technical Affairs, was also quoted as saying by the company’s website.
According to the official, in addition to 9,008 real and 335 legal representatives, a total of 780 life insurance agencies sell various IIC policies, “and it has been decreed that the number of life insurance agencies would be increased to three times the current capacity”.
Zahednia noted that in the process of attracting official representatives for the state-owned companies, those wishing to represent the firm in the area of life insurance will be given priority to expand the portfolio of life insurance, Financial Tribune reported.
Divesting Government Shares
The Iranian Privatization Company on Saturday announced the dates on which government shares in three insurance companies are to be divested to the private sector.
According to the company, a total of 17.34% share in the Alborz Insurance Company officially owned by the government, as well as 18.84% and 11.44% shares respectively held in Asia Insurance Company and Amin Reinsurance Company are to be divested in the capital market on Feb. 6-7.
The state’s stake in Asia, which boasts a capital of 2.3 trillion rials ($52.2 million), amount to more than 433 million shares. Each share is to be divested at a base price of 1,920 rials ($0.043), bringing the total value to more than 832 billion rials ($18.9 million).
The government owns more than 693 million shares in Alborz that has a capital outlay worth 4 trillion rials ($90.9 million). As each share is to be sold with a starting price of 1,275 rials ($0.028) in the bourse, the total value exceeds 884 billion rials ($20 million).
Amin Re’s capital outlay amounts to 2.5 trillion rials ($56.8 million) while more than 285 million of its shares are held by the government. With a base price of 1,432 rials ($0.032) for each share to be divested in the over-the-counter Iran Fara Bourse, the total value of the company’s state-owned stake amounts to 409 billion rials ($92.9 million).
After the shares are sold, Iran Insurance Company and Dana Insurance Company will remain the only state-owned firms, but based on a Cabinet decree, the stake in Dana is also to be divested soon.