Azerbaijani insurance company increases liabilities by 10%

Business Materials 8 June 2019 11:28 (UTC +04:00)

Baku, Azerbaijan, June 8

By Kheyraddin Nasirzade – Trend:

The total liabilities of Azerbaijan’s AzerInsurance State Insurance Commercial Company for 2018 increased by 10.1 percent and reached 12.09 million manats, Trend reports referring to the company's financial report.

Of the total liabilities, 94.2 percent consist of insurance reserves for non-life insurance (11.38 million manats). The volume of reserves of preventive measures for the end of the year amounted to 204,600 manats. In the structure of short-term liabilities, wage arrears amounted to 17,180 manats. Other accounts payable amounted to 479,200 manats.

The total assets of the company increased by 6.3 percent, reaching 27.14 million manats (as of January 1, 2019). In the structure of assets, long-term assets amounted to 7.9 million manats. Fixed assets in the form of real estate and equipment increased by 16.6 percent to 3.13 million manats. Intangible assets decreased by 1.8 times to 287,500 manats. When compared to the beginning of last year, the company's financial assets remained unchanged, amounting to 4.16 million manats. Other assets increased almost sevenfold, reaching 400,000 manats.

Short-term assets amounted to 19.17 million manats. Among the short-term assets, receivables from insurance operations decreased almost threefold, reaching 101,470 manats. The volume of receivables of affiliated organizations increased by 40 percent to 3.69 million manats. Budget receivables rose by almost 30 percent, reaching 71,180 manats. Other receivables amounted to 80,600 manats.

The total amount of cash for the year increased significantly by 23.5 percent, reaching 11.72 million manats, among which the main part is made up of manat bank account balances in the amount of 8.35 million manats, bank account balances of 11,800 manats, balances on deposit accounts of 3.35 million manats, balances in the ticket office of 729 manats, and other funds of 9,700 manats. The share of reinsurers in non-life insurance reserves increased significantly by 65.8 percent to 3.5 million manats. Settlements with accountable persons amounted to 11,950 manats.

The total capital of the company increased by 3.4 percent, reaching 15.06 million manats at the end of last year. The authorized capital, remaining unchanged, amounted to 9 million manats. Revaluation reserves made up 1.87 million manats. The volume of retained earnings of previous years amounted to 514,400 manats.

The company's total revenues for the year amounted to 52.5 million manats, which was formed due to insurance fees in the amount of 43.4 million manats, payments to the share of reinsurers of 5.28 million manats, and commissions of reinsurance contracts of 2.76 million manats. The funds allocated for the change in net insurance reserves (positive or negative) amounted to 748,060 manats. Investment incomes amounted to 118,300 manats. Subrogation incomes amounted to 996 manats. Other revenues amounted to 244,500 manats.

Total expenses amounted to 48.86 million manats, including insurance payments in the amount of 14.69 million manats, compensated insurance premiums of 49,090 manats, reinsurance premiums of 24.9 million manats, and expenditures on preventive measures reserves amounting to 106,800 manats. Operating expenses, along with other expenses of the company, reached 9.1 million manats. As a result, the company received a net profit of 3.68 million manats.

AzerInsurance has been operating in Azerbaijan since 1991. In January-March 2019, the company's fees amounted to 31.7 million manats, while its payments amounted to 2.95 million manats.


Follow the author on Twitter: @1nasirzade