Azerbaijani insurer prepares for serious capitalization
Azerbaijan, Baku, April 3 / Trend A. Akhundov /
The Azerbaijani International Insurance Company plans to increase its share capital by 5 million manat, the company board chairman Mammadsadih Mammadov told Trend today.
"The company has appealed to the founder [IBA] with a proposal to raise capital and has got the consent," he added.
Today the company's paid-up share capital hits 8.8 million manat. The company's total amounted to 9.46 million manat as of late 2011 or 11.82 percent more compared to 2010.
He stressed that the company's capitalization will occur only at the expense of shareholders.
"The increase in share capital and, consequently, total capital opens up new opportunities for the company," he said. "This promotes the participation in the bureau for compulsory insurance."
He said that at present, the company must deliver at least 70 percent of the risk for the reinsurance. The company may reserve up to 300,000 manat risks to itself on the basis of existing capital.
The International Insurance Company was established in 2002. It renders services on 32 types of voluntary and five types of mandatory insurance.
The International Insurance Company has the Insurance Financial Strength Rating (IFSR) in the Azerbaijani insurance market, assigned by Moody's Investors Service at "B2", "stable".
The official exchange rate is 0,7863 AZN/USD on April 3.