Most Azerbaijani insurers not interested in securities market

Business Materials 26 July 2011 15:18 (UTC +04:00)

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

Azerbaijani insurers are prepared to undertake all necessary requirements to work in the country's securities market, but most of them are not interested in activity in this direction, the executive director of the Association of Insurers of Azerbaijan Azer Aliyev said.

"Sometimes the insurers do not even have the resources for the development of insurance, not to mention other spheres," Aliyev told Trend on Tuesday. "While the stock market is the very interesting direction and important for insurers," he added.

According to the diversification norms of insurance companies'

investments, they can invest up to 15 percent of insurance reserves in non-state securities, while up to 100 percent - state securities.

So far, only one insurance company - Qarant Sıgorta have announced plans to create a separate broker company. At the same time, the company's board chairman Vagif Hasanov said that the securities market is very free and not professional. "I think it is a company of the future and creating it now and studying the market will give its yields in the future," he added.
The total turnover of transactions on all instruments at Baku Stock Exchange (BSE) for the first quarter of 2011 totaled 3. 725 billion manat, increasing by 4.42 times compared to the same period of last year.

The corporate securities market increased by 1. 73 times compared to the same period of last year. This is stipulated by the increased volume of transactions in corporate bonds by 2.23 times.

The state securities market increased by 5.14 times up to 3. 418
billion manat. This happened as a result of the sharp increase of operations by 4.39 times.

The number of deals increased by 1.5 times.

The official exchange rate is 0.7864 manat to $1 on July 26.