In its latest appraisal of risk retention capacity of insurers, the Central Insurance company of Iran (CII) gave Iran Insurance Company (IIC) the top spot.
According to a report seen on the CII website, the state-owned IIC is first on the list and can handle 33.98 trillion rials ($107 million) in risks in different categories.
Pasargad Insurance Company, affiliated to Bank Pasargad Iran, is second at 13.8 trillion rials ($43m) worth of risks.
Asia Insurance Company is next with 10.47 trillion rials ($32.9 m) followed by Dana Insurance Company at 8.12 trillion rials ($25.5m) capacity.
Alborz Insurance Company, Parsian Insurance, Mellat and Kowsar insurance firms were the other companies with acceptable risk retaining capacity.
Hafez Insurance Company, Baran Life Insurance Company and Hekmat Saba were at the lower end of the list.
Risk retention capacities announced by the CII are based on the balance sheets of insurers released on June 21.
The figures also include the capacity of reinsurance companies as per which Iran Moein Reinsurance Company was in the lead with a permitted risk capacity of 3.06 trillion rials ($9.6m).
Iran Moein recently got permission from the regulator to shift its operations from a general insurance company to a reinsurance company.
Iranian Re, affiliated to Bank Pasargad Iran was next with 2.43 trillion rials ($7.6m), followed by Amin RE 2.13 trillion rials ($6.69m).
The recently established company, Saman Re is allowed to accept risk up to 250 billion rials ($786,000), the lowest in the market.
Comparing the new data with the previous report on risk retention capacity to January 21, changes are seen in the top positions.
Asia lost its second place to Pasargad in the new ranking. Pasargad managed to increase is capacity. Dana Insurance managed to move from sixth place to fourth.
Risk retention in the insurance industry refers to the amount of risk that an insurance company is willing to pay for a policy, risk or group of risks.
The more risk a company assumes by underwriting new insurance policies, the more premium it collects and invests. When an insurer accepts additional hazards by selling policies it actually increases the possibility of insolvency.
A company's risk retention capacity, or the maximum amount of acceptable risk, is a crucial component in its operations.
