Albanian Government Endorses Privatization Strategy for Insurance Company

The Albanian government endorsed the privatization program for the Insurance Institute (INSIG) and forwarded it to the Albanian Parliament for approval. The privatization program calls for INSIG to be sold in two phases. The first phase foresees the selection of financial investors, who will be offered a 40 percent stake in INSIG. International financial institutions will be considered as financial investors. The second phase foresees the selection of a strategic investor that will be offered at least a 51 percent stake in INSIG for a controlling share. The strategic investor should be an insurance company, which will be selected as result of an agreement between the Albanian government and the financial investors, following a 12-24 month time period from the date of selection of the financial investors. INSIG was created in 1991 after the dissolution of former Institution of Savings Branches and is the only state-owned insurance company operating in Albania. Liberalization of the insurance market began in 1999, and several private insurance companies have been licensed for operation in the insurance market. (Source: Albanian Daily News)