Azerbaijan, Baku / corr. Trend I.Khalilova / The International Bank of Azerbaijan (IBA) put its International Insurance Company's daughter re-insurance company, InterProtect Re AG in Switzerland on sale, said the Chairman of IBA Executive Board, Jahangir Hajiyev.
InterProtect Re AG was created with 100% shares of the International Insurance Company of the International Bank of Azerbaijan.
"The decision was made due to the amendments to the legislation of Switzerland regarding increasing the capital and due to the demands of relevant Switzerland government regarding transformation of all captive companies (which accepts risks only from mother companies) into real re-insurance companies, and by the end of 2007, the Company should become a re-insurance company," Hajiyev said.
NBA needed to take such measures due to the limitations in the Azerbaijani legislation on increasing the capital of its daughter companies (the investments should not exceed 20% of the authorized capital of mother company).
According to Hajiyev, the capital of the International Insurance Company does not allow increasing the capital of InterProtect Re AG and therefore, the decision was made to sell it.
"I think that its sale will be successful because it has been assessed by the international auditor company KPMG," Hajiyev said.
Since 1 January, 2007 the authorized capital has been increased up to CHF 5mln (as of 7 May - 1 CHF equals AZN 0.7139). InterProtect Re AG was created two years ago, with authorized capital in the amount of CHF 1.2mln (nearly AZN 0.857mln).
As of the beginning of the year the authorized capital of the International Insurance Company was formed at AZN 8.8mln.