Azerbaijan's only reinsurance company aims to increase share of foreign risks

Business Materials 14 July 2011 13:46 (UTC +04:00)

Azerbaijan, Baku, July 14 / corr Trend A.Akhundov /

One of the major objectives of Azerbaijan's sole reinsurance company is to increase the share of foreign risks in its portfolio, Company Board of Directors Chairman Vusal Abbasov told Trend.

"We accept risks from Eastern Europe, the Near East, and South Africa. The share of foreign risks in the company's portfolio is around 10 percent, and continuing to increase", Abbasov added.

The company's portfolio distribution would do well to expand throughout different geographic regions and by offering different types of insurance.

"For instance, if natural disasters occur in a region, the risks must be covered through premiums from another region. So the portfolio must be diversified", Abbasov noted.

"To receive risks from other regions it is necessary to be known in these countries," Abbasov said. "This is quite a difficult process. It is necessary to advertise, to receive financial ratings. We will carry out work in this direction by late 2011. Afterwards, it is possible to increase the share of foreign risks."

Last year the company collected roughly 22 million manat.

"This year we hope for an increase, but plan to collect at least 20 million manat," Abbasov said.

Activity in 2010 resulted in a rise in assets for the Azerbaijani sole reinsurance company AzRe Tekrarsigorta, amounting to 33.098 million manat as compared to 22.495 million manat early this year, the company's balance sheet showed on Tuesday when published in the official press.

The company's aggregate capital as of late 2010 amounted to 25.82 million manat compared to 10.865 million manat a year earlier. AzRe Tekrarsigorta's authorized capital increase from 10.86 million to 25.8 million manat. The company's net income amounted to 15.619 million manat, increasing by 9.8 times during the year. The retained income increased fourfold to 20.798 million manat.

AzRe received its license from the Finance Ministry on Nov. 7, 2007. The company's shareholders are six physical entities. The company renders non-life insurance services both to local and regional insurance, reinsurance companies and reinsurance intermediaries, construction-assembly risks, insurance of water, air and automobile transport conveyances, cargo insurance, accident insurance, responsibility, and financial risks.

The official exchange rate is 0.7865 manat to $1 on July 13.