INSIG: Third time is a charm

TIRANA, June 5 -The Albanian government is trying to complete the privatization of INSIG, however, the efforts have so far proven futile. The procurement of a foreign company that would evaluate the assets of INSIG and help the Albanian government determine a price, has twice failed. Sources at the Ministry of Economy told the Tirana Times that both procurement efforts failed because of a lack of interest. Therefore, the Ministry has decided to repeat the procurement, once again, on June 11, 2008. The tender limit is Euro 120,000 and the winner will be allowed to evaluate the assets of INSIG during a two-week period. The winner should also evaluate the assets of INSIG in Kosova and Macedonia.
The state owns the controlling packet in INSIG, once the largest insurance company in Albania. INSIG is a joint stock company formed from the Institute of Deposits and Insurance and offers both non-life and life insurance policies. INSIG has lost, during the last three years, its leading market position. However, INSIG is still a strong brand name, found throughout Albania. The majority of state-owned vehicles are insured by INSIG. The Ministry of Defense has insured the life and health of Albanian soldiers serving in international missions through INSIG, also. The company is also very active in Kosova, where it has written motor insurance since 2000, and has its own subsidiary in FYR Macedonia.
The original privatization plan for INSIG, created three years ago, envisaged the sale of 40 percent of INSIG to European Bank for Reconstruction and Development (EBRD) and International Finance Corporation (IFC). Following that, 51 percent was going to be sold to a strategic business through an open international tender, while the remaining nine percent were to be offered to Albanian investors.