Process of licensing third Azerbaijani life company close to completion

Business Materials 7 January 2011 12:05 (UTC +04:00)

Azerbaijan, Baku, Jan. 7 / Trend U.Ismayilova /

JSC Pasha Heyat Sigorta, a specialized life insurance company will start operating in Azerbaijan since early 2011, with its license expected to be issued in the first half of January, Pasha Sigirta CEO Nofel Rzayev said on Friday.

"The licensing process takes 30 to 60 days and this period is to be completed in the first half of January," Rzayev said.

Pasha Heyat Sigorta has already passed the state registration in the Taxes Ministry, based on the authorization of the State Insurance Supervision Service under the Finance Ministry, he said. The company will begin official activities following its acquisition of a license from the State Insurance Service.

At present, there are two specialized companies for life insurance in Azerbaijan, namely Ateshgah Heyat and Qala Heyat.

Based on the law on "insurance activity", only specialized companies can be engaged in life insurance after March 2011.

Pasha Heyat Sigorta enters the market with a capital of seven million manat. Accordingly, it will be the most capitalized company on life insurance in the country.

The Finance Ministry's requirement for the capitalization of the newly established insurance companies is at the level of five million manat. Pasha Heyat Sigorta's sole shareholder is Pasha Holding.

The company's initial portfolio will consist of charges for life insurance, which will be shaped today by Pasha Sigorta.

Rzayev said Pasha Sigorta has permission for life insurance and this portfolio, formed at about 300,000 manat, will be transferred to the life company. In addition, Pasha Heyat Sıgorta is developing new products, which will be announced after obtaining the license, as well as its plans within the approved three-year business strategy.

Mursal Rustamov has already been appointed chairman of the Board of Pasha Heyat Sıgorta and Niyaz Ismayilov, his only vice. Ismayilov is also the Chief Technical Director of the company.

Pasha Sigorta is a member of Pasha Holding. It offers 31 types of insurance services to corporate and individual clients. The company's authorized capital is 20 million manat, with total assets of 28 million manat, and it is among the country's three leading insurers in terms of capitalization, maintaining, at the same time, one of the highest profit levels in the country's insurance sector.

Pasha Sigorta has been certified by Moody's as having attained the ISO 9001:2000 standard since 2007. Pasha Sigorta is also a participant of the U.N. Global Compact Initiative for the protection of human rights, the environment and countering corruption.

The official exchange rate is 0. 7977 manat to $1 Jan. 7.