Azerbaijani Finance Ministry allocates time for three insurers to solve problems

Business Materials 11 May 2010 12:53 (UTC +04:00)

Azerbaijan, Baku, May 11 / Trend U. Ismayilova /

The Ministry of Finance will consider resuming of the licenses of three insurance companies - Azal Sigorta, Gunay Sigorta and Emrah Sigorta suspended in May in six months, deputy head of the State Insurance Supervision Service of the Azerbaijani Ministry of Finance Mahir Abdullayev said.

"The Azerbaijani Ministry of Finance, in accordance with the law, gave a six-month period for insurers to solve the problems due to which licenses were suspended," Abdullayev said.

He said that the main reason for the suspension of licenses of three insurers was the inadequacy with the total capital as of January 1, 2010, which was to be brought up to two million manat.

According to Gunay Sigorta actuary Iskender Kerimov, the founders of the company have already begun the process of eliminating the revealed problems. The company intends to increase total capital to the required level.

"The total capital of the company will be increased during the given period of six months", Kerimov said.

Azal Sigorta and Emrah Sigorta companies were unavailable for immediate comment.

Earlier, in late April, the Finance Ministry refused from giving a perpetual license for insurance activity to JSC AzInvest Sigorta. It ceased its activity on the insurance market of the country.

"The total capital describes the value of assets owned by the company. Accordingly, not fulfilling the requirements for capitalization, the companies violate the standards of solvency, envisaged by the law," the State Insurance Supervision Service under the Azerbaijani Ministry of Finance Namiq Khalilov said, commenting on the refusal to give the license to AzInvest Sigorta.

So, about 25 insurance companies operate in Azerbaijan today.