EghtesadOnline: Iran Insurance Company, the largest and sole state-owned player in the domestic market, generated 47 trillion rials ($213 million) in premiums in the first three months of fiscal year (March 21- June 21) registering 29% growth year-on-year, the company CEO said.
This is while its total payout amounted to 18.4 trillion rials ($83.6m), which was a meager increase of 2% compared with the same period last year, Mohammad Rezaei was quoted as saying by the company’s website.
IIC recorded 10 percentage points decline in payout ratio, from 49% last year to 39% in the first quarter of current fiscal year.
"Representative offices accounted for 89% of the total premium in Q1," he said, and added that the remaining 11% came either directly or through the company's branches.
With more than 10,000 general agents, 2,000 life insurance agents and 255 brokers, the company has the largest network in Iran.
Rezaei also reflected on his company’s international operations. "Our foreign branches generated more than 3 trillion rials in premium in 2019, registering 36% increase compared with 2018."
Foreign branches total payout last year was 1.72 trillion rials.
"In the existing regional conditions, we decided to concentrate on Oman and the UAE markets. Given the tough financial restrictions, our overseas performance was satisfactory."
The company has 12 foreign branches.
Insurance companies collectively generated about 86 trillion rials ($357m) in premium in the first two months (March 20-May 20), registering 31.4% growth compared to the same period last year. IIC alone accounted for 32.8% of the premium.
Officials of the company have expressed interest in further expanding their market share. The company is planning to increase its capital to 110 trillion rials ($817m), and shift its main revenue source from insurance to investments.
"We have plans to increase capital mainly through revaluation of our fixed assets…This will help raise our risk retention capacity from 30 trillion rials to 60 trillion rials”.
IIC is capable of handling risks worth at 23.2 trillion rials, rising above its previous 18.61 trillion rials, calculated based on its financial statements until Sept. 2019.