This quarter, we maintain a fairly dismal view of the prospects for Iran's/Insurance/Q2 2018 sector. The partial easing of economicsanctions against Iran in early 2016 does not appear to have had a significant impact on Iran's/Insurance/Q2 2018 sector. The variouschallenges that have constrained the development of the life segment (high inflation and low household incomes) and the non-lifesegment (lack of access by insurers to capital, reinsurance and know-how from outside the country) remain in place. Penetration(premiums as a percentage of GDP) will likely remain at a low level in both major segments with only 0.3% for life and under 2% forthe non-life segment. Although discussion around changes in the regulations restricting foreign players entering the market mightbenefit the industry, there have yet to be any material changes in this respect.