Amin Re, a privatized Iranian reinsurance company, is hopeful about starting cooperation with the Russian National Reinsurance Company (RNRC), the largest reinsurance company in that country.
According to Amin Re’s public relations department, CEO Mostafa Kiaei has been invited for talks with RNRC officials to follow up on talks for transferring risks that started last year, the Risknews website reported.
Amin RE officials started negotiations with RNCR in Moscow after announcing plans to expand ties with companies in Russia, East Asia and neighboring countries.
Insurance companies are facing restrictions for transferring risk to foreign peers, though talks have been held to this effect with companies in Azerbaijan, Russia and Syria.
Amin Re said earlier talks were held with two Azeri insurance companies, saying that its representatives are expected to visit Tehran for further negotiations.
Amin Re representatives reportedly held talks with Pasha Insurance and AZRE’s officials in 2020 in Baku. It plans to collaborate with Syria's Arab Union Reinsurance Company, Kiaei said without providing further details.
US sanctions and major foreign reinsurance companies' aversion to cooperate has deprived the country of the ability to transfer major risks outside its borders.
Some Iranian insurance companies signed deals with major international peers following the lifting of economic sanctions in 2016.
Saman Insurance Company's agreement with Munich Re, Mellat Insurance Company and Central Insurance of Iran's deals with SCOR RE are two examples.
However, the deals were suspended or cancelled as a result of the Donald Trump’s decision in 2018 to pull the US out of the landmark nuclear deal Iran signed with the six world powers in 2015.
Amin Re and Iranian Re were the two main reinsurance companies for many years. Recently, The Central Insurance company of Iran issued operation license for Saman Reinsurance Company, allowing the private firm to start operations.
CII later allowed the offshore Iran Moein Insurance to move from general insurance to reinsurance. Pars Reinsurance Company, affiliated to Parsian Bank, has also acquired a permit.
Earlier in January, TehranRuck Reinsurance Company issued a subscription notice to sell shares. Raya Reinsurance Company has also received primary permission for joining the market.
A limited number of firms have permits from the regulator to enter the gradually growing reinsurance industry. Market observers say loopholes and poor regulations are depriving the industry from playing its deserved role. According to officials, approximately $500 billion of country's resources are insured.
