The International Insurance Company (IIC) is going to maintain the permanent volume of investments in the state short-term bonds (SSB) at the level of 7,5 billion AZM, the companys board chairman Fariz Abbasov told Trend. The highest level of placing in SSB by IIC was 20 billion AZM. The companys management finds it profitable due to the ongoing tendency of the AZN strengthening as the state bonds are nominated in the national currency.
The insurance company changed the portfolio structure and deposits are kept only in the national currency which enables it to avoid losses from currency falls in 2006, which affected the company in 2005.
A high operational profit was in 2005, however, the damage was inflicted by the fall of the euro and US dollar rate in regard to manat, as deposits of the company were kept in these currencies until the certain time.
The operational profit on the results of 2005 was $700,000, however at the result of the exchange rate fall the net profit was $100,000.