Central Asian countries pristine market for Iran reinsurance
According to Fars News Agency’s economic correspondent, Mostafa Kiai told reporters: “Currently, the total share of non-governmental reinsurance companies in accepting reinsurance in the country is 10% and 90% of the reinsurance market is owned by the government through Central Insurance and the insurance company.” Iran is located.
In response to a question recently announced by the Minister of Economy, the government intends to gradually withdraw from the reinsurance market and transfer it to non-governmental companies, he said: “In this regard, I think a strong non-reinsurance company should Form a government and put the rest of the reinsurance companies under it. Because at present, with a capital of 400 billion Tomans, it is possible to establish a reinsurance company, at present, these figures are not significant at all compared to foreign relying companies.
Kiai also reminded this point: before the revolution, the reliance company ایشینRI (Asian Reinsurance) was established with the capital of Iran and in cooperation with the United Nations and Iran as the largest shareholder in Thailand, which was supposed to provide reinsurance services to Southeast Asian countries, which now has a capital of $ 200 million. Half of the capital has been paid in the amount of $ 100 million.
He said: The share of the Iranian government in the Asian Reinsurance Company is 35% and there are two members of the board Director has it. Even in some years, Mr. Hemmati from Iran is the head of the delegation Director It was Ishin Rey (Asian Reliance) Reinsurance Company. We wrote a letter to the current and former Minister of Economy that if the government could not take advantage of the sanctions on its capital in the Asian Reinsurance Company, we would be willing to buy part of the government capital in that company and take it through our international experience, and To be able to provide support services in the acceptance and transfer sector in Southeast Asia.
He added: “In the discussion of reinsurance, the art is not to work only inside the country, and whatever insurance risks are distributed between countries and in the world, it is in the interest of insurance companies.” For example, if an aircraft is insured and crashed by an insurance company, a company alone cannot pay for the damage, but the risk must be distributed.
The CEO of Amin Reinsurance Company said: “We are not in the reins sector as much as one-twenty-fifth of Iran Insurance and we have about 3 to 4% of the total reinsurance of the country and all private reinsurance companies have less than 10% of the market shares.” They have.
Regarding the company’s capital, Kiai said: “We started with a capital of $ 46 million. Now, according to the dollar exchange rate, our capital is about $ 20 million, and our capital is about 500 billion tomans based on the rial. We plan to increase our capital to 800.” Billion tomans increase. Now, some reinsurance companies such as Iran Moin have started working with a capital of 800 billion Tomans, which is not a high capital for reinsurance operations.
He stressed: “We need a strong reinsurance company in the country that at least 51% of its shares belong to the private sector and other public and private reinsurance companies can work under it.”
“In Russia, it is RNRC that provides reinsurance and provides reinsurance services to Russia and the Central Asian Commonwealth of Independent States, but now that Russia is at war, the Commonwealth of Independent States is willing to work with Iranian reinsurance companies,” said the insurance industry expert. And this is the best opportunity for us to be able to provide support services to Central Asian countries.
“After the developments in Ukraine and Russia, we wrote a letter to the Central Insurance that if the government supports, we can provide reinsurance services to the Commonwealth of Independent States instead of the Russian company,” Kiai said.
“We follow the central insurance policy, but none of the Central Asian and Commonwealth countries are under sanctions,” he added. Working in Central Asia has its own problems, but we have to go and get their market. They are much weaker than Iran in terms of reinsurance.
The CEO of Amin Reinsurance Company stated: Reinsurance companies themselves do not provide insurance coverage directly, but usually 30% of the insurance premiums are received by insurance companies as paid work. Therefore, we do not have a direct role in obtaining an insurance portfolio.
He said: “If we compare premiums compared to 10 years, it is less than 10 years ago due to the continuation of inflation of premiums, because the dollar rate has risen and real growth has not taken place in the insurance industry, but inflation and rising dollar, the value of companies Has increased insurance.
“Nevertheless, we try to give dividends to small shareholders, so that 15 days after the meeting, the real shareholders will receive dividends through سجام We deposited in their account. In the first six months of our current fiscal year, we earned about 250 billion tomans in profit for our shareholders. While the insurance premium we received was 117 billion tomans.
In response to a Fars reporter’s question about how the total premium received may be less than the profit, he added: “Insurance companies invest and no insurance company in the world has plus or minus 2% in all insurance fields.” In most countries, car insurance claims 100% of the premiums, but insurance companies invest with the money they earn from customers and make a profit from the investment income. The private shareholder also wants to make a profit by having insurance shares, this year we hope to get 20% of his stock price Exchange Give dividends to shareholders.
The CEO of Amin Reinsurance Company emphasized: through the profits of private shareholders سجام We will pay immediately. For example, last year, after the meeting, it took 15 days for us to pay the dividends of the shareholders, and we even paid the dividends of the funds at the same time.
Kiai continued: Unfortunately, most of our country’s economy is state-owned, and private companies are in fact a cover. Most companies are privately owned, but the government is a shareholder in them.
He is in Mooreد گفت The Minister of Economy stated about the reduction of the government’s share in the reinsurance market: the company has not been instructed in this regard yet.
The CEO of Amin Reinsurance Company also said this: According to the former head of Central Insurance, Iranian insurance companies cover about $ 500 billion in risk in the country’s economy every year. Most insurance companies are in the field of third party insurance and unprofitable treatment. Unless Central Insurance contributes to these losses by taking a mandatory reinsurance contribution.
Kiai said: لازمThe capital required to establish a reinsurance company is currently 400 billion tomans, which is a small amount and the money is for a large house in the north of Tehran, while in Bahrain there are three reinsurance companies, each worth $ 300 million. They have capital and they are not just created for Bahrain, but they provide services to most countries in the world.
He added: “If we also have a strong private reinsurance company, such as the GIC India Company, which was formed with government funding, but has now been privatized and made a profit. Therefore, if we have a strong reinsurance company, we can provide insurance services to foreign countries and be profitable.
“China has one of the largest reinsurance companies in the world in terms of reinsurance, but it does not cooperate with us,” said Amin, CEO of the reinsurance company.
He said: “If banking relations are correct, we can have a reliable cooperation with GIC India in the field of acceptance and transfer of reliance.”
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