License of Azerbaijan’s Alfa Insurance revoked

Business Materials 26 August 2016 14:55 (UTC +04:00)
Azerbaijan’s Financial Market Supervisory Body has revoked the license of Alfa Insurance company.
License of Azerbaijan’s Alfa Insurance revoked

Baku, Azerbaijan, Aug. 26

By Azad Hasanli – Trend:

Azerbaijan’s Financial Market Supervisory Body has revoked the license of Alfa Insurance company, said the Supervisory Body Aug. 26.

A temporary administrator has been appointed at the insurance company according to the decision of the Board of Directors.

The license was cancelled due to the sharp deterioration of Alfa Insurance’s financial situation, the loss of assets and capital. Moreover, the company didn’t create adequate reserves and fulfill its obligations.

A special control regime was introduced at Alfa Insurance for some time due to the existing problems, said the Supervisory Body in its message. It was caused by the bankruptcy of Texnikabank, founder of the company.

Texnikabank’s bankruptcy made Alfa Insurance’s financial situation even more critical, according to the message.

The insurance company’s membership at the Compulsory Insurance Bureau and the sale of its assets have been suspended since April in order to prevent the growth in Alfa Insurance’s liabilities and rid the market of additional risks, said the message.

The message also said that the Supervisory Body together with Azerbaijan Deposit Insurance Fund [ADIF, the liquidator of Texnikabank] tried to recover Alfa Insurance by selling its insurance portfolio. However, it was impossible due to lack of the company’s reserves with sufficient liquidity.

“Considering that it is not possible to restore the insurance company’s financial situation level required by law without capital injection and the bankrupt founder doesn’t have such funds, it was decided to revoke its license,” said the message.

The Supervisory Body said also that all issues related to Alfa Insurance’s liabilities can be addressed to the temporary administrator at the address: Block C, Babek Plaza, Babek Avenue, Khatai district, Baku, Azerbaijan.

Alfa Insurance’s clients can obtain additional information from Azerbaijan’ Financial Market supervisory Body: (+99412) 493-50-58 (int. 414), and from the temporary administrator – (+99412) 440-07-07.

Alfa Insurance OJSC was founded in 1997.