Azerbaijan, Baku, Dec. 14 / Trend U. Ismayilova /
Capitalization of Azerbaijani insurance companies will be a positive factor for developing the insurance market in the country, Hikmet Allahverdi, the assistant chairman of the Azerbaijani-Turkish company "Basak-İnam Sıgorta Sirketi", said.
On the other hand, the level of the paid authorized capital of insurance companies must not create an impression about the possibilities of insurance companies.
"When assessing the means, one can be sure that they correspond to the figure fixed by the State Insurance Supervision Service to the minimum capital of insurance companies, he said. However, shareholders of the companies, taking into account the potential use of the insurance market can assess their own funds and other sources," he said.
"The decision of the Finance Ministry may be considered fair. We are interested in the adequacy of the requirements for minimum market capitalization to the used capacity of the insurance market. I think it would be in the interests of all companies," Allahverdi said.
The Azerbaijani Ministry of Finance made changes to the minimum capitalization requirements of insurance and reinsurance companies. According to them, the capital of insurance companies as of January 1, 2011 must be provided at the level of 3 million manat (earlier 3.5 million manat), as of January 1, 2012 - 4 million manat ( 5 million manat).
When making a decision about the minimum capital requirements of insurance and reinsurance companies, the impact of global financial crisis on the financial position of insurance and reinsurance companies was taken into account.
Azerbaijani Insurance Company "Basak-İnam Sıgorta Sirketi has been operating on the insurance market of the country since 1996. About 49 percent stake belongs to Groupama Sigorta A.S., a subsidiary of Turkish largest insurance company of France and Europe, operating in 15 world countries - Groupama, 1951 percent - to Azerbaijani shareholders, including TuranBank, AzerTurkBank, ABC Aqrarkredit and other shareholders.
The official exchange rate is 0,7987 manat to $1.