Azerbaijani Finance Ministry Liberalizes Foreign Capital in Azerbaijani Insurance Companies

Business Materials 8 November 2007 18:36 (UTC +04:00)

Azerbaijan, Baku / Trend corr I. Khalilova / Azerbaijani Finance Ministry plans to partially liberalize presence of foreign capital in Azerbaijan's insurance market. After enacting of the new Law on Insurance, restrictions for the share of foreign capital will be included into the total capital of all insurance companies operating in the countries.

The restriction will make up 49% of the total market, while currently this limit is imposed on the capital of each company, the Deputy Finance Minister Azer Bayramov said on 8 November.

Today that is a key obstacle for the world's leading insurance companies to enter Azerbaijan. Many large insurers want to enter Azerbaijani market as majority stockholders.

A total of foreign capital in Azerbaijani insurance market constitutes only 8.5%.

There are 29 insurance companies operating in Azerbaijan, 9 of them with foreign capital. The aggregated capital of the insurance companies amounted to AZN 52.732mln by the middle of 2007.