Another life insurance company may open in Azerbaijan

Business Materials 24 January 2011 13:51 (UTC +04:00)

Azerbaijan, Baku, Jan. 24 / Trend U.Ismayilova / 

The Azerbaijani Insurance Company Alfa Sigorta plans to submit an application to the Finance Ministry in February to receive a license to open a subsidiary company called Life - Alfa Heyat, Board of Directors Chairman Khayal Mammadkhanli said.

"Alfa Sigorta is carring out prior preparation and a subsidiary life insurance company may open in the first half of 2011," Mammadkhanli said.

He added that Alfa Sigorta plans are linked with a high demand and the potential for new forms of compulsory insurance services.

In July 2010, President Ilham Aliyev approved a law on compulsory insurance on labor ability loss in production.

Over 500 agreements were signed on compulsory insurance on labor ability loss in production in the first half of January, he said. The companies launched the insurance in 2011. All contracts have been signed, with two companies specializing in life insurance - Qala Heyat and Ateshgah Heyat.

Alfa Sigorta was founded by Texnikabank, which bought a 100 percent stake in the company in Dec. 2006. Alfa Sigorta is licensed to provide 30 kinds of insurance services, including 6 compulsory and 24 voluntary. Its authorized capital is 3.1 million manat.

The official exchange rate is 0.7974 manat to $1 Jan. 24.