Shut Down Azeri-Asia Insurance Company’s Clients Choose Other Insurer

Business Materials 16 September 2008 12:56 (UTC +04:00)

Azerbaijan. Baku, 16 September / Trend corr. U.Ismayilova /Gambar Suvanverdiyev, Chairman of the Board of the Azeri-Asia insurance company, said that the portfolio of the shut down Azerbaijani and Iranian insurance company was passed to another BE& G insurance company on the will of corporative clients.

"Corporative clients of Azeri-Asia are banks in general. These banks cooperated with BE& G and were satisfied with the company's operating," Suvanverdiyev said. Bank's corporative clients after the talks voiced the will to cooperate with BE& G.

BE& G insurance company was inaccessible for commentaries.

"At the next meeting of founders, which is scheduled for 7 October, the sides will consider the further destiny of the company, which will remain a joint stock company and starts other operations, rather than insurance," said Suvanverdiyev.

Further activity of Azeri-Asia has not been detailed.

The board of Azeri-Asia took a decision to pass its portfolio to another BE& G insurance company, without changing terms of agreements.

Azer-Asia's founders announced sale of their portfolio in May after cancellation of license on insurance activity. The company has about 17,000 individual and about 60 corporate clients and all of them are informed about sale of their policies.

In August, company requested AZN 300,000 from its founders to pay debts to insurers and employees. Under the sides' share in the company, the Azerbaijan founder will pay 51% of debts and the Iranian founder - 49%.

In February, the Azerbaijani Finance Ministry refused to the joint Azeri-Asia insurance company to extend term of license on insurance activity, which was issued on 21 November in 2002. It was revealed that the company's activity did not correspond to the insurance legislation and requirements of license as a result of analyses held from 1 October 2006 to 1 October 2007 and this fact was a basic reason of the ministry's refusal to prolong term of license. Violation facts were revealed during examinations, as well.

The joint Azer-Asiya insurance company, whose founders are the Iranian Asiya Sigorta (49%) and AzerSigorta (51%), the state insurance commercial company, has operated at the Azerbaijani insurance company since 1997.

BE& G, which has been operating since 1998 and extended the license in February 2008, offers 28 kinds of insurance services and four of them are obligatory. The authorized capital of the company makes up AZN 800,000.

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