Opinions of Russian Insurers on Expansion of Foreign Capital Participation in Azerbaijani Insurance Market

Business Materials 10 April 2008 14:15

Azerbaijan, Baku, 10 April / Trend corr. U.Ismayilova / Russian company ROSGOSSTRAX positively appropriates cancellation of 49% limit for participation of foreign capital in the insurance companies in Azerbaijan. "Cancellation of a 49% limit is a positive step towards attracting foreign investors," Usnunz Arsen, ROSGOSSTRAX -Capital insurer agent, stated to Trend on 10 April.

According to Arsen, ROSGOSSTRAX took an efficient base in the Russian market and is interested in participating in the insurance market in Azerbaijan.

The limit for participation of foreign investments in the capital of local companies was cancelled mid-March after adoption of the Bill on Insurance activity.

Alexander Yurasov, official of the Russian 'Group of General Agents', which is the largest partner of American insurance company AIG, believes that the acquisition of one of Azerbaijani companies is not an easy issue. For example, AIG founded AIG Life in Russia, Yurasov said.

The Group unites more than 2,000 partners engaged in the accumulative life insurance sphere in Russia and Ukraine.

"Recently, prospects to develop business in the CIS countries were discussed. Company leadership considers opening business in Kazakhstan, Mongolia and other countries," Yurasov said.

Alexei Daikhovski, deputy director of Communication Department of First insurance company CJSC, stated to Trend that the company does not plan to invest in the Azerbaijani market yet. "The main issue today is to strengthen positions in Ukraine," Daikhovski.

At present, some 28 insurance and one re-insurance company functions in Azerbaijan. As a result of 2007, the gross amount of the insurance collections totaled AZN 147.2mln under payments of AZN 35.62mln. The top ten insurance companies as a result of 2007 include the companies with premiums from AZN 5mln to AZN 20mln.

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