Azerbaijani-Turkish insurance company ups equity participation at local bank

Business Materials 11 July 2011 13:00 (UTC +04:00)

Azerbaijan, Baku, July 11 / Trend A. Akhundov /

The Azerbaijani-Turkish insurance company Basak İnam Sıgorta plans to increase its equity participation in TuranBank's capital from approximately 1 percent to 2-3 percent, the company's board chairman Orhan Hasanov said. The authorized capital amounts to 22 million manat.

"At present, our package of shares in TuranBank is estimated at 150,000 manat," Hasanov said. "It is planned to be brought up to 200,000-250,000."

Hasanov said that the company also intends to focus on investments in securities this year.

"We buy securities of the Azerbaijani Mortgage Fund (AMF) while interest rates on mortgage bonds are relatively high," Hasanov said. "At present, we have placed 250,000 manat in securities. We will continue increasing this portfolio."

The Azerbaijani insurance company Basak Inam has been operating in the market since 1996.

The Turkish company Groupama-Groupama Sigorta A.S., a daughter company to the largest insurance company in France and Europe and operational in 15 countries, owns 49 percent of company shares. The remaining 51 percent belongs to Azerbaijani shareholders, including TuranBank, AzerTurkBank, Aqrarkredit and other financial groups. The company renders 31 types of insurance services.

TuranBank was established in 1992. The bank has 25 shareholders, five of which are legal entities (21.8 percent) and 20 physical entities (78.2 percent).