Capital Increase Deadline for Insurers

Beleaguered insurance companies have only until the end of the current fiscal year (March 20, 2018) to meet the new minimum capital requirements set by the Cabinet, announced the head of the Central Insurance of Iran.”We did what we could to reduce the capital requirement of insurance companies and the companies in need of capital increase have only 11 months left. If they fail to comply, they must consider merging or reducing the scope of their work,” Abdolnasser Hemmati was quoted as saying by Banker.ir. Based on the lowered minimum capital requirements approved by the government in mid-February, the license of general insurance firms will be granted to entities with an initial capital asset of 1.5 trillion rials ($40 million) and reinsurance firms will require an initial capital of 2.5 trillion rials ($66.6 million).