Azerbaijani state insurance company privatization can be resolved

Business Materials 27 July 2011 13:29 (UTC +04:00)

Azerbaijan, Baku, July 26 / Trend, A. Akhundov /

Uncertainty in privatizing the only Azerbaijani state commercial insurance company AzerSıgorta is connected to insuring state agency employees.

"Now new laws are adopted and amendments are made to existing normative legal acts. While we provide services to all government employees, soldiers, officials and so on, we do not know when privatization will be considered", the company's deputy chairman Mohubbat Farajov told Trend.

However, he believes that this issue should be resolved in the near future.

As the company chairman Mammad Mammadov said earlier, a German insurance company Munich Re expressed interest in acquiring a stake in the state commercial insurance company.
"As AzerSıgorta is a 100 percent state owned company, we first have to coordinate plans to attract foreign shareholders with the government", Mammaov said.

He said the decision on privatization of the company may be taken based on the order of the country's president.

At present, the company has 28 kinds of insurance services. The company opened its own regional branches and offices throughout the country.

State Insurance Company AzerSigorta was founded in 1992 after the collapse of the Soviet Union on the basis of former state insurance board. It has 80 insurance agencies in all cities and districts of the republic.

According to the State Insurance Supervision Service under the Azerbaijan Finance Ministry, the company's premiums amounted to 24.19 million manat with payments of 10.71 million manat in 2010. The company collected premiums amounting to 7.047 million manat with payments of 3.216 million manat in January-April.

The official exchange rate is 0.7863 manat to $1 on July 27.