Baku, Azerbaijan, July 8
By Kheyraddin Nasirzade - Trend:
Net profit of Azerbaijani company Mega Insurance for 2018 decreased by 4.3 percent or by 212,191 manats, Trend reports with reference to the company’s financial report.
As of Dec. 31 last year, the company’s net profit amounted to 4.756 million manats.
During the reporting period, revenues of the insurance company increased by 34.4 percent or 6.9 million manats, reaching 27.016 million manats. The revenues were secured mainly due to insurance fees worth 25.571 million manats, which is by almost 9 million manats more than in the previous year.
Reinsurance fees amounted to 194,860 manats, demonstrating a 15-percent growth. In revenues, the share of reinsurers amounted to 33,777 manats. Commission income rose 2.8 times, up to 513,470 manats.
The funds allocated for the change in net insurance reserves (positive or negative) amounted to slightly more than 1 million manats in the red. Investment income decreased by 8.8 percent, reaching 1.495 million manats.
During the reporting period, the company’s expenses increased by 51.6 percent and reached 21.071 million manats. A significant increase was observed in operating expenses - by almost 90 percent, to 17.482 million manats, among which insurance payments amounted to 3.648 million manats. The cost of reinsurance payments increased significantly by 2.4 times, to 13.541 million manats.
The costs associated with the conduct of business over the past year amounted to 3.575 million manats.
As a result, profit amounted to 5.945 million manats. After deducting income tax of 1.189 million manats, net profit amounted to 4.756 million manats.
The insurance fees of Mega Insurance for January-May this year amounted to 13.445 million manats, payments - 1.31 million manats.
Mega Insurance began operations Oct. 1, 2010. In 2012, the insurance company received a perpetual license for insurance activities in Azerbaijan.
(1.7 manats = 1 USD on July 8)