Mir Business Bank (a subsidiary of Iranian Bank Melli Iran) registered the Miran insurance company in Russia

A new foreign insurer will appear on the Russian market in the near future – a subsidiary has been registered by Mir Business Bank (the Russian legal entity of the Iranian Bank Melli Iran). According to experts, the company will likely focus on insuring the risks of foreign economic activity of companies from Russia and Iran. At the same time, the market may become interested in it as a way to access Iranian reinsurance capacity.

Mir Business Bank (MB-Bank, a subsidiary of Bank Melli Iran) registered the Miran insurance company in Russia, it follows from the data of the Unified State Register of Legal Entities, which drew attention Interfax. The company’s authorized capital is about 600 million rubles. Mir Business Bank’s share in the company is 90%, the remaining 10% belongs to Miras Financial Company, controlled by the bank. The general director of the company is Alexander Kuznetsov, who previously headed a number of insurance companies – Helios, Vernu and Guta-Insurance. However, the company has not yet received a license to provide any type of insurance. But market participants do not rule out that it may receive licenses before the end of the year.

According to experts, it is likely that the insurer will primarily deal with insuring the risks of foreign trade between Russia and Iran.

In trade and economic relations between the Russian Federation and Iran, insurance relations can focus on cargo insurance, and we are talking about all types of freight transport, explains independent expert Andrei Barhota. In particular, the press service of the Ministry of Industry, Trade and Energy of the Astrakhan region announced that the largest shipping company of Iran, the Islamic Republic of Iran Shipping Lines, will increase its fleet of cargo ships in the Caspian Sea to ensure an increase in cargo traffic along the North-South ITC through Astrakhan ports.

In October of this year, Deputy Trade Representative of Russia in Iran Andrei Blinnikov said that at the end of 2021 the parties noted an increase in mutual trade turnover of 80%, in 2022 the increase was 20%, and the trade volume approached a record $5 billion, but in 2023 there will be “some decrease” in trade turnover. According to Mr. Blinnikov, almost 80% of mutual settlements come from Mir Business Bank.

Another area of ​​activity for the new insurer may be the insurance of objects received by the buyer using Islamic financing mechanisms.

In this case, the bank purchases equipment or machinery and transfers it to the recipient, who pays in installments, but the amount of the debt itself is determined with a “markup.” It is possible to insure the object transferred to the recipient, and the recipient himself, explains Mr. Barhota.

At the same time, market participants believe that the Iranian insurer is unlikely to compete with Russian players. The company is unlikely to be created for an active presence on the Russian market, says Kommersant’s interlocutor from among the insurers. Moreover, if we are talking about insuring cargo or trade credits, then Russian insurers can also do this. The insurance companies surveyed did not respond to Kommersant’s request.

Experts do not rule out that the new insurer will engage in reinsurance. The amount of capital theoretically allows one to apply for a reinsurance license, but at the same time it will not allow providing significant reinsurance capacity, notes B1 partner Tatyana Samsonova. However, she clarifies that transfer of risk to an Iranian counterparty may be considered.

However, several delegations of Iranian companies have already offered their services and capacities to their Russian colleagues, but it is not worth achieving a quick solution to the issue of ratings and large shares that will go to Iran due to risks, notes Kommersant’s interlocutor among insurers.

Yulia Poslavskaya