Azerbaijan, Baku / Trend corr. I.Khalilova / The International Bank of Azerbaijan conclude a deal with Luxemburg company of InterProtect Re AG on selling daughter company of the International Insurance Company (IIC) in Zurich, Switzerland, for 2,6mln franks, IIC reported on 24 August.
Taking into consideration that the project has an investment character selling was implemented after assessment of functioning of InterProtect Re AG, IIC has said. For this purpose the international auditory company of KPMG was drowned to the project. The total sum of the deal was 2.6mln of franks. While InterProtect Re AG was established with 1.2mln of franks two years before.
Necessity to sell the company occurred due to changes in the bill of Switzerland concerning increase of capital and demands of corresponding Switzerland Authorities to transform all existing kept companies into real company on re-insurance.
The company should have to become re-insurance by the end of 2007. The International Bank of Azerbaijan had to take such measures due to limitations existing in the Azerbaijani legislation on increasing capital in its daughter companies (investments should not exceed 20% from capital of mother company).
The capital of IBA does not permit increase of the capital of InterProtect Re AG.
The authorized capital stock for re-insurance companies was increased by 5mln in Switzerland.
Presently, authorized capital stock of International insurance company made up AZN 8.8mln.
InterProtect Re AG was established in 100% constituent of IBA, which belongs to IBA.