Azerbaijan, Baku, March 18 / Trend I.Khalilova /
Azerbaijani-Turkish insurance company Başak İnam Sığorta plans to continue the process of capitalisation of profits in 2013, company Chairman Orkhan Hasanov told Trend.
"Although the company's authorised capital of six million manat exceeds the regulatory requirement of the Ministry of Finance by 20 per cent, we intend to continue replenishment of the capital at the expense of profits. This year we are going to propose to shareholders to direct dividends for 2012 for replenishment of the capital. In 2013, the company's profit is expected to amount to nearly one million manat," Hasanov said.
As of January 1, 2013, the minimum capital requirement for insurance companies is five million manat. The Ministry of Finance has not yet approved a new schedule of capitalisation of insurers and reinsurers operating in the country which is expected later this year. Despite this, the companies conduct capitalisation themselves depending on business expansion plans.
Hasanov said the Başak İnam Sığorta company ended 2012 with a profit of about 300,000 manat, but insignificant due to an increase in expenses for opening offices and branches in regional parts of the country.
To date, Başak İnam Sığorta has six branches, four of which opened in 2012. In connection with the company's plans for obtaining permission of the Ministry of Finance for provision of compulsory insurance, expansion of its branch network is expected this year.
Başak-İnam Sığorta Şirkəti has been operating in the insurance market of the country since 1996. Some 19.95 per cent of the shares are owned by Zamin Bank, 48 per cent account for individuals, 17 per cent are owned by Groupama Sigorta A.Ş. (Turkish subsidiary of the largest insurance companies in Europe Groupama), 8.5 per cent by Turanbank, six per cent - AzerTürkBank and less than one per cent account for the non-bank credit organisation Aqrarkredit.