Albania’s state-owned insurer to go on the block next month
TIRANA (Reuters) – Albania will offer its majority stake in state-owned insurer INSIG for sale in May, officials said yesterday, adding that the buyer could then choose to either buy out the firm’s other shareholders or keep them as partners. A team consisting of a legal adviser and sales adviser would be set up to take offers from strategic investors for 61 percent of INSIG, the former monopoly which is now ranked Albania’s third-biggest insurer after SIGAL and SIGMA. «INSIG will be offered for sale in May,» Deputy Finance Minister Sherefedin Shehu said in a written comment to Reuters. «The process will be open until 2007, but the government aims to end the sale either by end-2006 or within a year.» The World Bank’s International Finance Corporation (IFC) and the European Bank for Reconstruction and Development (EBRD) own the remainder of INSIG, with a 19.5 percent stake each. Elira Sakiqi, the World Bank’s IFC country manager, told Reuters both institutions were willing to sell their stakes or continue in a partnership with the strategic investor. «IFC’s priority is for a successful privatization with the sale of a controlling stake to a reputable and strong strategic investor, who will develop INSIG and contribute to the evolution of the insurance market in Albania,» Sakiqi said. «We are willing to sell the entire shareholding to support this process,» she added. However, should the strategic investor express a strong preference for their involvement, IFC will be ready to start negotiations, Sakiqi said. INSIG offers both life and non-life insurance products and controlled 16 percent of the non-life market last year.
