Azerbaijan Industry Insurance Company completed 2018 with significant

Business Materials 14 June 2019 16:16 (UTC +04:00)

Baku, Azerbaijan, June 14

By Kheyraddin Nasirzade – Trend:

The Azerbaijan Industry Insurance Company completed 2018 with losses worth 2.17 million manats, Trend reports referring to the financial report of the insurance company.

In the meantime, in 2017, the company's net profit amounted to 141,500 manats.

The company's operating income amounted to 8.76 million manats, most of which accounted for insurance fees worth 8.13 million manats.

The remaining amount was distributed between the share of reinsurers in insurance payments in the amount of 265,100 manats and commission on reinsurance contracts – 359,300 manats.

Insurance reserves amounted to 135,500 manats. Investment income amounted to 277,200 manats. Subrogation revenues reached 163,200 manats. The company’s other revenues decreased by almost eight times, reaching 160,200 manats.

The company’s total expenses increased by 16.2 percent up to 11.66 million manats in 2018 compared to 2017, of which the share of operating expenses reached about 55 percent.

Among the operating expenses, insurance payments reached 2.86 million manats, the returned insurance premiums – 112,100 manats, expenses related to reinsurance - 3.38 million manats, contributions to the fund of preventive measures – 16,880 manats, costs for optimization – 16,420 manats.

The costs for running the company's business amounted to 1.87 million manats. The company’s other expenses more than doubled and reached 3.41 million manats in 2018 compared to 2017.

The company also paid profit tax in the amount of 60,000 manats, income tax – 99,900 manats, VAT - 110.3 manats, five-percent deductions to the Azerbaijani Compulsory Insurance Bureau – 84,450 manats, tax deducted at source – 81,380 manats, social insurance and security – 191,100 manats, compulsory payments – 30,030 manats and other taxes – 927.16 manats in 2018.

The company's total assets for the year greatly decreased by 15.9 percent up to 18.73 million manats. In the structure of assets, long-term assets increased by 24.2 percent and reached 811,528 manats. Fixed assets in the form of real estate and equipment amounted to 12.288 manats. Intangible assets decreased by 11.5 percent and reached 153,570 manats. The volume of deferred tax assets increased by more than 3.5 times and reached 245,549 manats. Other assets for the year remained unchanged and reached 400,000 manats.

The volume of long-term assets decreased by 17.2 percent and reached 17.92 million manats. Accounts receivable on insurance increased by 2.6 times up to 1.2 million manats, on operations of reinsurers – 42,980 manats, on budget – 671,738 manats, on claims – 178,527 manats and other receivables – 278,966 manats.

The assets in the form of cash decreased by 12.8 percent and reached 13.84 million manats, of which the balance on manat bank accounts amounted to 152,538 manats, on currency accounts - 362,917 manats, the remaining amount worth 13.32 million manats accounted for the bank deposits.

The share of reinsurers in non-life insurance reserves amounted to 1.68 million manats. The costs associated with future reporting periods amounted to 22,036 manats. Settlements with accountable people reached 1,700 manats. Other assets amounted to 2,710 manats.

The company’s total liabilities for the year increased by 28.8 percent up to 7.21 million manats. In the structure of liabilities, non-life insurance reserves amounted to 4.79 million manats. The deductions to the fund of preventive measures amounted to 248,331 manats. The debts on reinsurance operations amounted to 1.08 million manats.

Accounts payable increased by 6.8 percent and reached 982,987 manats, including budget liabilities worth 78,993 manats, liabilities of associated organizations - 93,200 manats, other compulsory payments - 8,995 manats, other debts - 801,770 manats.

Among other short-term assets is the volume of income of future reporting periods worth about 104,000 manats.

The company’s authorized capital for the year remained unchanged and reached 11 million manats. The total capital decreased by 30 percent due to dividend payments in the amount of three million manats, as well as losses in the amount of 2.17 million manats.

(1.7 AZN = 1 USD on June 14)


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