Azerbaijani insurance company has no intentions to get license for reinsurance activity
Baku, Azerbaijan, June 24
By Emin Aliyev - Trend:
Bakı Sığorta JSC does not intend to apply to the Azerbaijani Ministry of Finance for obtaining license for reinsurance activity in the short term, deputy board chairman of the company Ramin Mammadov told Trend.
"This issue is not on the agenda in the short term, as the reinsurance market of Azerbaijan is very small. Under these conditions, to increase the authorized capital by 2.5 million AZN only for reinsurance seems inefficient," he said.
Nevertheless, the company will work on the increase of the company's capital, according to Mammadov.
"At present, two years have passed since we adopted a strategy of long-term development of the company. Currently, the authorized capital of the company meets the requirements of the regulator and amounts to five million AZN, but it will be increased by 6.5 million AZN by the end of the year. The increase will be carried out by using both the equity funds and partly at the expense of the significant amount of retained earnings on the balance sheet," the deputy board chairman noted.
Bakı Sigorta's controlling stake is owned by Bank Respublika OJSC (51 percent). The company has operated since August 28, 2007 and has a perpetual license for rendering 25 voluntary types of insurance services.
The official exchange rate on June 24 is 0,7843 AZN / USD.