Azerbaijan, Baku, August 30 / Trend N. Ismayilova /
The Azerbaijani Ministry of Finance restored Ltd. Gunay Sighorta's license for insurance activities, the Ministry said.
The license of the company is restored in connection with the liquidation of previously revealed violations of the company.
In July, the State Committee for Securities registered the issue prospectus of ordinary registered shares of JSC "Gunay Sighorta" totaling 1.05 million manat. About 1,050 shares were issued at par value of each share worth one thousand manat. Underwriter is LLC "Standard Capital".
After placing the new issue the authorized capital of the company reached 2,5 million manat, and the total capital - up to 2,65 million manat.
Additional issue of shares was caused by the need to bring capital of the company to the required level of capitalization. Gunay Sighorta's license was suspended due to the failure to fulfill requirements of state insurance supervisory authority for the implementation of certain standards of solvency of insurance legislation and financial stability of insurers May 7, 2010.
Insurance companies were supposed to bring the total capital to at least two million manat in accordance with the law "Insurance activity" January 1, 2010. Regulatory requirements are violated by insurance companies.
According to the law, Azerbaijani insurers may invest in bank deposits no more than 60 percent of total capital, and no more than 30 percent in one bank. According to the current law "Insurance activity", insurers may also invest in real estate, private equity, as well as in other areas. But they do not do so because of favorable conditions for investments in bank deposits.
Deposit accounts in banks are the most liquid for the insurers of the country. It is the cause of active investment by insurers. Azerbaijani insurers are investing in state securities, which are now less liquid and less profitable.
Gunay Sighorta's premiums for January-June amounted to 0,44 million manat with payments worth 0,09 million manat.
The only founder Gunay Sigorta, operating since 1992, is the Azerbaijani joint-stock bank Gunay Bank.
On August 30, the official exchange rate is 0.8036 manat to $1.