The Albanian government announces the new owner of INSIG

The Albanian government announces the new owner of INSIG

Tirana, 24 March 2016/Independent Balkan News Agency

The Albanian government has announced that Eurosig is the winning company in the bid for the purchase of the state owned insurance company INSIG (Institute of Insurance). The tender was opened two weeks ago, when the government announced the sale of 100% of the shares of INSIG at a value of 15 million euros.

Four Albanian companies submitted their bids, but the highest bid was the one submitted by the winning company, Eurosig with 2,2 billion ALL.

According to official information, Eurosig is ranked the third biggest company in the Albanian non life insurance market with over 15%, after Sigal-Uniqa Group Austria sha and Sigma Interalbanian Vienna Insurance Group. With this acquisition, INSIG is very likely to be ranked second.

The process of privatization of INSIG has started in 2007, but it has failed several times. EBRD and IFC were also involved in the attempts for the privatization of INSIG, but to no avail.

In 2010, there were hopes for a successful privatization, as an American company declared that it would buy all shares for 50 million USD, but this company later withdrew.

INSIG privatization also recently became an object of debate in the Albanian parliament.

Former Prime Minister Sali Berisha said that the real value of this institution is 38 million euros, but it being sold cheaper to benefit the clans.

PM Rama accused the previous government of reducing INSIG from a leading company to a ghost company. He said that the bids were beyond the most optimistic forecasts. /ibna/