Ava Pars Reinsurance Company (Ava Pars Re) was officially launched as Iran’s sixth reinsurance company.
The Central Insurance company of Iran (CII), the industry regulator, issued the operation license for the company allowing it to cover risks in all categories.
The company is affiliated to Parsian Bank Financial Group. Parsian Bank, Parsian Exchange, Parsian Reinsurance, Parsian Brokerage, Parsian Leasing Company, and Lutus Parsian Investment Bank are membered in the group.
Three other reinsurance companies have received licenses from the regulator since the beginning of the calendar year in March.
Tehran Ruck Reinsurance Company (Tehran Re) received operating permit from the CII last week as the fifth reinsurance company.
Back in April, CII issued operation license for Saman Reinsurance Company, allowing the private firm to start operations. The regulator also issued a license allowing Iran Moein Insurance Company to move from general insurance to reinsurance.
As per a CII announcement, this company discontinued insurance business when the Iranian year started on March 21.
Iran Moein is owned by the giant Iran Insurance Company and and handles risk in the free trade and economic zones.
Amin Re and Iranian Re were the two main reinsurance companies.
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 reinsurance industry from playing its deserved role.
However, US economic sanctions announced in 2018 plus growing demand for reinsurance have prompted investors to rise to the occasion.
According to a directive issued by the government and the High Council of Insurance, the minimum required capital for establishing an insurance firm is 5 trillion rials.
CII said earlier it has received 30 applications for starting insurance and reinsurance firms. So far 35 insurance companies operate in Iran including offshore firms and reinsurance companies. The number is likely to reach 46 with the regulator saying that 11 are now ready to enter the market.
