The Cabinet of President Hassan Rouhani’s administration approved a
measure based on which the government will sell its remaining shares in
three major insurance companies which–barring Iran Insurance Company–are
the only firms in which the government still holds a stake.
All remaining shares belonging to the government in Asia Insurance
Company, Alborz Insurance Company and Dana Insurance Company are to be
divested.
After rates are devised by a specialized council, the Iranian
Privatization Company will float them on the capital market, according
to the official news portal of the Presidential Office, IBENA reported.
Minister of Economic Affairs and Finance Masoud Karbasian had heralded
the divestiture of the government’s remaining shares in the three
companies in the 24th National Conference on Insurance and Development
held in Tehran on Dec. 4.
“The privatization of insurance companies is a must and as I personally
believe that the three insurance companies owned by the government
[Asia, Alborz and Dana] must be divested, I will vigorously follow up
this process,” he told the audience at the biggest Iranian insurance
event of the year held to mark National Insurance Day.
Asia Insurance Company is 20% owned by the government while the
government’s share in Alborz Insurance Company stands around 17%.
According to Dana Insurance Company’s chief executive, about 30% of the
company’s shares are owned by the government through the Social
Security Organization and the Social Security Investment Company.
If the three aforementioned insurance firms are fully ceded to the
private sector, Iran Insurance Company will remain the sole state-owned
insurer. However, that will not be remotely equal to the government
forfeiting its share in insurance companies, as Iran Insurance Company
alone earns about 60% of all premium incomes.