Anglo-Azerbaijani Insurance Company plans 20-percent-growth of premiums in 2011

Business Materials 14 May 2011 16:57 (UTC +04:00)

Azerbaijan, Baku, May 14 / Trend, A.Akhundov /

The joint Anglo-Azerbaijani Insurance Company Temza Sıgorta Qrupu plans to collect premiums worth 1 million manat by late 2011, the company's chairman of board Samir Mustafayev told Trend.

According to the State Insurance Supervision Service under the Azerbaijani Ministry of Finance, in 2010 the company collected premiums amounting to 0.83 million manat. It paid compensation worth 0.44 million manat. In January-April 2011 the company collected 0.27 million manat and paid 29,000 manat.

He said that there are plans to increase the share capital. New sources of funding are searched.

"But the issue of merging with another company is not considered," he said.

He said that the company's capital may be increased at the expense of a new shareholder - one physical entity - resident of Azerbaijan, if he buys out a share of the British Glencarron Group Limited.

"The talks are underway," Mustafayev said.

British Glencarron Group Limited owns a 49 percent stake in the authorized capital of Insurance Company Temza Sigorta Qrupu. Temza Sigorta Qrupu has been operating on the insurance market of Azerbaijan since 1996. Azerbaijan's share holding is owned by the local physical entity and legal entity (Gala Investment). The authorized capital is 0.9 million.

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.
The official exchange rate is 0,7908 manat to $1.