30% of the shares of “Avae Pars Reinsurance” will be subscribed
According to the monetary financial news, the press conference of “One Meeting, One Offering” for subscription of shares in the correct publication of Avae Pars Revenue Insurance Company (public company about to be established) was held this morning in OTC.
According to the report of OTC Iran Management, Majid Benvidi, the representative of the founding board of Avae Pars Reinsurance, emphasized that Avae Pars is a specialized company in the insurance industry, and said: “Reinsurance is a contract to cover the risks of the insurance company’s insurance operations.” It is a contract concluded to compensate a reinsurer and a direct insurer with special terms and conditions of reinsurance operations.
What is reinsurance?
According to him, relying companies reduce the risk for insurance companies in the event of a loss.
The representative of the founding board of Avae Pars Reinsurance stated: The philosophy of reinsurance companies is to distribute risk among several insurers so that less damage is caused to insurance companies when damages occur.
According to him, what leads to the profit of insurance companies is the opportunity to receive insurance premiums until the payment of damages, which can create insurance benefits by investing, and insurance and reliance companies are usually considered as asset management companies.
Babian said that in the discussion of reinsurance, we have two mandatory and optional contracts: “In our country, the largest reinsurance is the central insurance of the Islamic Republic of Iran.”
Benvidi stated: In Ava Pars Insurance Company, we have optional contracts and the part of mandatory contracts is related to the central insurance.
History of reinsurance activities in Iran
Explaining the history of reinsurance activities in the country, he said: The beginning of reinsurance in Iran has been since 1316. Also, the Law on the Establishment of Central Insurance and Insurance in 1350 deals with reinsurance operations and also the regulations of the Supreme Insurance Council have set standards for reinsurance operations of insurance companies.
He pointed out that Central Insurance is the main reinsurer of the country in mandatory and optional contracts, adding: “One of the main reasons for establishing a reinsurance company is the increase in value and capital of insured items in recent years and its incompatibility with the holding capacity of insurance companies.” Also, increasing the country’s risk management capacity based on technical criteria to prevent the outflow of foreign currency from the country and attract premiums and foreign exchange earnings from abroad are other main reasons for setting up these companies.
The main reasons for establishing reinsurance companies
Benavidi considered the change of government policies in the insurance industry and the provision of the development of reinsurance by the private sector as other issues considered for the formation of reinsurance companies and said about the vision of Ava Pars Reinsurance: , Risk management and other financial services and investment in domestic markets, the region and other developing countries, which operates to the highest standards of service delivery.
Persian Voice Missions
The representative of the founding board of Ava Pars Reinsurance about the company’s mission also emphasized that providing the highest quality reinsurance services is at the top of the important missions of this group, adding: optimal use of financial resources to improve the quality of reins, creating strategic partners in domestic markets and International Insurance is another mission of Ava Pars to take advantage of market opportunities and provide an effective and efficient response to the needs of customers.
According to him, this group strives to provide the most advanced risk management services to domestic and foreign markets, create profitability and long-term and sustainable financial growth for shareholders, invest in the latest communication and information technologies to facilitate operational efficiency, management control, cost effectiveness and competitiveness.
Macro goals
Following the introduction ceremony of Avae Pars Reinsurance Company, before listing the company on the OTC market of Iran, Benvidi also examined the major goals of this reinsurance company and stated: Profitability, protection and increase of shareholders’ equity is one of our most important goals.
He added that providing oversupply for the maintenance capacity of domestic direct insurance companies and free zones is another goal of Ava Pars and continued: Foreign, participation and membership in domestic, regional and international reinsurance funds, mutual cooperation with reinsurers in exchange for transfer, cooperation with the direct insurer in investing and targeting insurance activities, stabilizing the insurance of companies and avoiding fluctuations in losses, Developing the activities of direct insurers and avoiding fluctuations in losses, developing the activities of insurers in terms of volume and variety and acceptable risks, providing technical and professional assistance to direct insurers and reducing pressure from the Central Insurance and the Special Sanctions Fund in line with the Sixth Development Plan. The important goals of this company.
Introduction of founders and percentage of ownership
He further referred to the founders of Ava Pars Revenue Insurance Company and said: Parsian Financial Group Company with 20% ownership, Parsian Insurance Company with 15% ownership, Saba Tamin Parsian Company with 20% ownership, Karafarin Bank Investment with 10% ownership and Atieh Company Parsis Pars with 5% ownership constitute the founding board of this company.
Subscription details
He further referred to the details of the underwriting of Ava Pars Reinsurance and said: The capital of this insurance company is 5 thousand billion Rials, of which the founders have committed 3 thousand and 500 billion Rials and 70% of which is equivalent to 2 thousand and 450 billion Rials in cash. Have paid. Also, 1,500 billion Rials have been pledged by the underwriters that 70% of the mentioned amount, equivalent to 1,050 billion Rials, will be provided in cash at the time of underwriting.
He further announced the amount payable per share in the subscription of Avae Pars Reinsurance Company 700 Rials (equivalent to 70% of the nominal value of the share) and continued: this amount will be paid in cash at the time of subscription and the rest of the nominal value of each share In the amount of 300 Rials per share will also be the commitment of the subscribers, which according to Article 5 of the draft articles of association will be received within two years from the date of company registration with the company registration authority.
The representative of the founding board of Pars Revenue Insurance Company announced: 30% of the company’s shares will be subscribed on Saturday, November 29, and this offer will continue for one month.
It is worth mentioning that the shares under publication of Avae Pars Reinsurance Insurance will be subscribed at the underwriting price of 70 Tomans per unit and the nominal value of 100 Tomans from November 29. The maximum shares of real and legal persons are 100 thousand and 1 million shares, respectively.