Government says it has set a 18.2 million Lek (Euro 127,000) price tag to pick a consultant in a tender scheduled for April 2, 2012
TIRANA, March 13 – Government has resumed efforts to sell wholly-state owned INSIG Insurer seeking a consultant to reassess the assets of the company which has failed to attract investors during the past few years. In an announcement published on Public Procurement Agency, government says it has set a18.2 million Lek (Euro 127,000) price tag to pick a consultant in a tender scheduled for April 2, 2012.
The call comes after government has removed the price tag of USD 40 million set in 2008 before the global crisis “as not reflecting the real value the company has today.”
After failing to sell for several consecutive times during the past couple of years, government has recently approved some new changes to the privatization law regarding state-owned insurer INSIG– which gives a priority to domestic investors. The new rules have been sent to the Ministry of Finance which is expected to announce the holding of another international tender on INSIG’s sale.
Established in 1991, INSIG has over 130,000 clients. The company now operates in Albania, Kosovo and Macedonia, with estimated assets of 63 million USD.
American Reserve Life Insurance, a part of Heritage Guaranty Holdings, withdrew at the last moment in June 2009 after offering 25 million Euros ($36.9 million) for 61% of INSIG’s shares.
State-owned insurer INSIG which has been put on the privatization list of public assets is currently the fifth largest insurer, controlling 7.6 percent of the compulsory insurance market and 11.7 percent of the voluntary market, according to the Financial Supervisory Authority.
INSIG, once the holder of a monopoly of the Albanian insurance market, has been losing its market share in recent years due to tough competition from private players.
Apart from INSIG, the new privatization list compiled by the government includes the sale of oil producer Albpetrol and the remaining state-owned shares in Albtelecom, and power distribution operator and oil refiner ARMO.
