Azerbaijan’s AtaInsurance talks revocation of reinsurance license

Finance Materials 20 December 2018 20:00 (UTC +04:00)

Baku, Azerbaijan, Dec. 20

By Taleh Mursagulov - Trend:

Total capital of the Azerbaijani insurance company AtaInsurance decreased due to a sharp increase in sale of insurance products, Orkhan Mammadov, first deputy chairman of the Board of AtaInsurance, told Trend Dec. 20.

He was commenting on the suspension of the reinsurance license.

Mammadov noted that due to a sharp increase in sales, AtaInsurance significantly increased its reserves, and this affected reduction in total capital.

He said that according to the requirements of the legislation, the authorized capital of the insurance company should be 5 million manats for conducting insurance activities and another 5 million manats for conducting reinsurance activities.

“Our total capital always exceeded this amount, but at the moment it has become slightly below 9 million manats and we think that this is temporary,” Mammadov said.

He noted that with stabilization of sales of insurance products in the near future it is expected that the company’s total capital will again exceed 10 million manats and AtaInsurance will continue to conduct its reinsurance activities.

Earlier, the Board of Directors of the Financial Market Supervisory Authority of Azerbaijan (FIMSA) suspended AtaInsurance’s license for reinsurance activities for five months due to the non-compliance of the company’s total capital with minimum requirements.

(1.7 AZN = 1 USD on Dec. 20)


Follow the author on Twitter: @TalehMursagulov