Baku, Azerbaijan, July 1
By Zulfiyya Gurbanova - Trend:
American Chartis (AIG Insurance) insurance company made the decision to withdraw from Azerbaijan, a source in the market told Trend.
"The company made a decision to leave the Azerbaijani market. There are a lot of ways this can happen and one of them is the sale of the company. If the shares of the company are sold, then it will be in full volume. If the sale is not held, the company will simply be closed. The sale simplifies the exit from the market, and the closure requires additional time and unproductive expenditures,", the source said adding that it does not matter whether the company will be sold to a local or foreign investor.
The daughter of AIG Insurance in Azerbaijan has always been very profitable and did not need the support of the parent company, according to the source.
"The reason for the closure is that the Azerbaijani market is very small and to have a subsidiary company here is unprofitable. Along with this, AIG will continue to support the Azerbaijani market through reinsurance. However, the size of the market in itself has not been up to the expectations of the parent company," the source said.
As the decision to leave was made over a year ago, pending contracts were transferred to other local companies, according to the source.
"These issues have been agreed with the customers - they found other insurers suitable for them, to whom the contracts were transferred," the source said.
The general meeting of shareholders Chartis Azerbaijan will be held on August 11.The agenda includes approval of the financial report of the company for 2013 and other issues.
Chartis Azerbaijan collected 39.190 AZN with payments of total 272 AZN, in January-May, 2014, according to the State Insurance Supervision Service of Azerbaijan. At the same time a year earlier, the company's premiums exceeded 553.210 AZN with payments volume of 381.640 AZN for the same period last year.
Chartis (AIG Insurance) is a large international organization in the field of property and personal insurance (insurance other than life insurance), serving more than 40 million customers in more than 160 countries and jurisdictions.
There are 28 insurance companies and one reinsurance company in Azerbaijan.
Official exchange rate on June 30 is 0.7843 AZN / USD.
Edited by CN