TIRANA, March 24 – The Albanian government has announced Albanian-owned Eurosig as the winner of a tender to purchase state-run insurance company INSIG. Eurosig, which has been operating in the Albanian insurance market for a decade and increased its market share to 15 percent in 2015, bid 2.2 billion lek (Euro 15.8 million) to buy INSIG, compared to a starting price of €15.3 million set by the Albanian government, beating three other competitors. The company has been left a 30- day deadline to make the payment, otherwise it risks losing a 30 million lek (€214,000) guarantee.
Recovered Earth Technologies, a U.S.-based company operating in the oil and gas sector was the only foreign company to participate in the tender in a joint venture with an Albanian company.
Once the holder of a monopoly of the Albanian insurance market, INSIG, which also operates in neighbouring Kosovo and Macedonia, has been losing considerable market share in recent years due to the market liberalization and tough competition from private players.
INSIG’s saw its Albania market share further drop to 5.84 percent in 2015 in the non-life segment while its life insurance share dropped to 8.42 percent, down from 11.8 percent in 2014, according to latest data by the Financial Supervisory Authority.
Back in 2009, American Reserve Life Insurance, part of Heritage Guaranty Holdings, withdrew at the last moment after offering €25 million ($36.9 million) for 61 percent of INSIG’s shares.
The Albanian insurance market, dominated by two Austrian insurance groups, is overwhelmingly non-life oriented with around 91 percent while compulsory motor vehicle insurance accounts for 60 percent of total insurance premiums. Some ten insurance companies operate in Albania, of which only INSIG remains wholly state-owned following unsuccessful privatization attempts.
