Insurance Institute of Albania

completed

INSIG is Albania''s leading insurer providing property and causality (P&C) as well as life insurance products with its P&C business accounting for over four-fifth of its premiums. The project involves the privatization of INSIG via divestment for a combination of technical partner and strategic investor. There will be an initial sale of 40% of the share capital, of which 20% will be purchased by IFC (subject to a maximum cost of US$10 million equivalent) and 20% by another multilateral development bank. This will be followed by the sale of an additional 51% of share capital to a strategic investor within the next two years. IFC has an important role in the project by serving as a catalyst for the introduction of a reputable technical partner and providing credibility to the privatization process. The project has a number of developmental benefits. First, by facilitating the company''s association with a reputable partner, it would strengthen INSIG''s operations, management and information systems. Second, by helping build a strong market-driven insurance player, the project would have a demonstration effect in terms of liberalization, product diversification and best practice of corporate governance. Third, by establishing an efficient locally owned and operated insurance company, the project would expand the level of domestic investment.