BAKU, Azerbaijan, Feb. 14
By Yusif Aghayev – Trend:
A list of Azerbaijani insurance companies with the highest payout ratio as of 2019 has been disclosed, Trend reports on Feb. 13 referring to the Azerbaijani Central Bank’s report.
Silk Way Insurance company has the highest payout ratio. When collecting insurance premiums worth 18.5 million manat ($10.8 million manat), the company made insurance payments worth 19.9 million manat ($11.7 million manat). The payout ratio reached 1.08.
Such a high indicator is stipulated by the fact that the company specializing in aviation insurance made big insurance payments for this type in 2019.
The company ended 2018 in a completely different way.
Silk Way Insurance company with a total amount of fees worth over 17 million manat ($10 million) made payments worth 1.7 million manat that’s $1 million (payout ratio 0.1 - over 10 times less).
ATA Insurance company with fees worth over 18 million manat ($10.6 million) made payments worth 14.6 million manat that’s $8.6 million (payout ratio 0.8) in 2019 ranked second.
The situation greatly differs from the indicators of 2018, in which the company collected insurance premiums by almost 4.5 million manat ($2.6 million) more but paid by four million manat less ($2.3 million).
The company explains this by a high degree of unprofitability on compulsory liability insurance of vehicle owners. The company, which has a wide regional network consisting of 14 branches and 12 representative offices, is actively involved in compulsory liability insurance of vehicle owners. High unprofitability for this type of insurance has recently been observed throughout the country's insurance market.
Xalq Sigorta and A-Group insurance companies, with a payout ratio of 0.56, rank third and fourth. In 2019 Xalq Sigorta greatly increased both the collected insurance premiums in relation to the indicators of 2018 (28.3 million manat that’s $16.6 million against 14.5 million manat that’s $8.5 million) and insurance payments (over 16 million manat that’s $9.4 million against 3.8 million manat that’s $2.2 million).
“A-Group” improved last year's indicators both in terms of the amount of the collected premiums and in reducing the payout ratio - from 0.61 to 0.56. The priority for the A-Group insurance company is voluntary medical insurance. This type of insurance is traditionally considered very unprofitable.
Among the top five companies with the highest payout ratio in 2019 is Ateshgah insurance company, with a coefficient of 0.51, which also decreased compared to 2018. It reached 0.54 in 2018.
The leaders of the insurance market - PASHA Life and PASHA Insurance ended 2019 with a payout ratio of 0.47 and 0.35, respectively.
In general, the Azerbaijani insurance companies paid insurance indemnities worth 301.5 million manat ($177.3 million) in 2019, which is 61.2 million manat ($36 million) or 25.4 percent more than in 2018.
Today, 22 insurance companies and one reinsurance companies operate in Azerbaijan.