Azerbaijani insurer takes steps to renew license
Azerbaijan, Baku, July 21 / Trend I.Khalilova /
The Azerbaijani State Securities Committee registered the emission of ordinary registered shares this week at Gunay Sigorta totaling $1.05 million manat, the Baku Stock Exchange reported.
The company issued 1,050 shares with a 1,000-manat par value of each share. Standard Capital is the underwriter of the emission.
The company issued additional shares to meet the Finance Ministry's capital requirements. The ministry suspended Gunay Sigorta's insurance license May 7.
Gunay Sigorta will resume activity by late July, Chairman of the Board Emin Agayev said earlier. "Such expectations are connected with our plans to place additional shares July 25-26."
The company's share capital will increase to 2.6 million manat and its total capital to 2.5 million manat, Agayev said.
In accordance with the law on insurance activity, insurance companies had to bring their total capital to at least 2 million manat by Jan. 1.
According to the law, insurers cannot invest more than 60 percent of their total capital in bank deposits, and more 30 percent in one bank. The law also states that insurers may invest in real estate, private equity and other areas.
Gunay Sigorta 's premiums in January-May totaled 0.44 million manat with payments of 0.08 million manat. Gunay Bank is the company's only founder.