Azerbaijani-Turkish insurance company plans to up assets in 2011

Business Materials 11 July 2011 13:19 (UTC +04:00)

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

The Azerbaijani-Turkish insurance company Basak İnam Sıgorta plans to increase assets up to about 6 million manat before the end of 2011, the chairman of the company's board Orhan Hasanov said.

According to the company's balance sheet, its assets totaled 5.203 million manat as of 2010, compared to 3.742 million manat as of the end of 2009.

Long-term assets totaled 2.22 million manat, short-term - 2.983 million manat. The company's joint capital increased from 2.163 million manat to 3.645 million manat. This growth was ensured as a result of increasing Basak Inam Sigorta Sirketi's share capital by 1.6 times, up to 3.25 million manat.

"At present, there is a problem of cash," Hasanov said. "Because of this, clients focus on partial insurance. It reduces the total capital of insurance companies."

Meanwhile, Basak İnam Sıgorta's authorized capital is planned to increase from the current 3.5 million to 4 million manat at the expense of shareholders' capital.

"As of the first six months, the fees amounted to 1.5-1.6 million manat, at payments of 600,000 manat," Hasanov said. "The fees are planned to be increased up to 4 million manat by the end of 2011. But a more realistic figure is 3.5 million manat."

According to the State Insurance Supervision Service under the Azerbaijani Finance Ministry, the company's fees totaled $2.6 million manat, with payments of 1.5 million manat in 2010.

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.