Foreign companies increase interest in Azerbaijani insurance market

Business Materials 8 November 2010 18:33 (UTC +04:00)

Azerbaijan, Baku, Nov. 8 / Trend A.Akhundov /

The arrival of the French AXA company and the expansion of the U.S. Chartis' activities in Azerbaijan indicate the growing interest of foreign companies in the local market on the backdrop of an ailing global insurance market, Azerbaijani Pasha Sigorta Chairman Nofel Rzayev said today.

"Today, insurance volumes are declining and and fewer insurance and reinsurance packages are being provided worldwide," he said. "Given this trend, the processes that we have recently observed are indications of the growing interest in the local market."

According to Rzayev, there are three major international players on the Azerbaijani insurance market -- Chartis, AXA and Groupama (France).

"This leads to increased competition on the market, and we are ready," he said.

Earlier, Chartis purchased a 100-percent package of assets in AIG Caspian Insurance. Upon the founders' decision, the company's name was changed to "Chartis Azerbaijan."

The company's new name was registered at the Justice Ministry on Oct. 15.

The AXA Group bought shares in the European Bank for Reconstruction and Development in the Azerbaijani MBASK's capital. The group's AXA Seguros Generales acquired a controlling stake by purchasing the bank's shares in MBASK's capital. The bank had owned a 30-percent share and the company's principle shareholder Eldar Garibov had owned a 21-percent stake. Garibov will own the remaining 49-percent stake.