Baku, Azerbaijan, Feb. 13
By Abbas Akhundov - Trend:
Azerbaijani insurance company Atasıgorta is to apply for a licence for reinsurance activity, Atasıgorta chairman of board Museib Aliyev told Trend on Feb. 13.
The insurers must obtain a licence for this activity to conduct reinsurance operations, according to the amendments of Azerbaijani insurance legislation in late 2013.
The capital of the insurance company wishing to obtain such a licence must exceed the minimum requirements for insurance companies which is five million manat at present and by 2.5 million manat from March 1, 2014, then by five million manat from January 1, 2015, according to the draft decision by the Azerbaijani Finance Ministry.
Atasıgorta's authorised capital today totals 7.6 million manat. Nevertheless, the company intends to raise it to 10 million manat this year.
"We render services for reinsurance and plan to develop this kind of activity," he added. "We developed the reinsurance concept. We have good relations with local and foreign companies."
The revenue from reinsurance amounted to half a million manat in 2013. The company collected premiums totalling 12.6 million in 2013 which is 16 percent more than in 2012. Payments exceeded three million manat which is a 10 percent growth rate.
"Plans for the reinsurance development in the country encourage insurers to think about getting international rankings," he added. "The ratings corresponding to Azerbaijan's sovereign rating would allow covering risks from neighbouring countries.
Atasıgorta Company has been operating on the Azerbaijani insurance market since 2004. The company renders 22 voluntary and four compulsory types.
The official exchange rate is 0.7844 AZN/USD on Feb. 13.
Translated by NH
Edited by SM