Albanian government has officially launched the procedures for the sale of INSIG, the only fully state-owned company in the insurance market, Albanian Daily News reported on Tuesday.

The Ministry of Finance published on the official website of the Procurement Agency the announcement for the sale by tender of the shares of INSIG.

The tender will take place on March 10, 2016, where the companies interested in buying INSIG must submit the offer to the Ministry of Finance. According to the government, all shares of the public company will be put on sale.

Previously the government has set up the bid evaluation criteria through a special decision. According to the formula, 80 percent of the points will go to the price offered, while the business plan and the quality of buyers will have 10 points respectively. In parallel, each bidder must guarantee his offer with a fixed deposit of 30 million lek (235,854 U.S. dollars). The terms of the contract to be signed with the winning company must receive approval from the Financial Supervisory Authority.

According to Albanian Ministry of Finance, INSIG accounting value is 15.3 million euros (16.57 million U.S. dollars). Compared to 2009 when the company was put on sale, the company's value has decreased by almost three times as a result of mismanagement. During these years the company has constantly lost grounds in the market.

According to official data from the Financial Supervisory Authority, for the period January-November of last year, the company collected 667 million lek (5.3 million U.S. dollars) in premiums, accounting for 5.7 percent of Albania's insurance market, down from 6.3 percent it had a year ago.

INSIG was established in July 1991 as the single state institution that exercises insurance and reinsurance activity in Albania. INSIG is 100 percent owned by Albanian Minister of Economy. Enditem

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