BAKU, Azerbaijan, Aug. 21
By Eldar Janashvili – Trend:
A united agricultural insurance company will be established in Azerbaijan for the first time ever, Trend reports with reference to the Azerbaijani Ministry of Agriculture.
The implementation of the project for the company creation is envisaged as part of measures taken in connection with the application of the agricultural insurance mechanism in the country.
According to the Agricultural Insurance Fund of Azerbaijan, the new company will operate as a joint stock company.
In this regard, a proposal was sent to all companies operating in the non-life insurance sector in the country to take part in the authorized capital of the new joint insurance company.
Some insurance companies has already agreed to partake in the authorized capital of the united insurance company, in connection with which a meeting of shareholders of these companies was held and a corresponding decision was made.
The constituent assembly for the establishment of Agrarian Insurance Company OJSC was held on 24 July. Seven insurers that intend to participate in the activities of the company were represented at it. As a result of the meeting, it was decided to establish the company.
After that, an appeal was sent to the Central Bank of Azerbaijan (CBA) to issue a permit for the company's activities. An application for state registration of the company will be submitted after the CBA’s response to the initial appeal.
According to the agreement with the founders, the statutory fund of Agrarian Insurance Company was set at 2.187 million manat ($1.286 million). Each founder will have 312,500 manat ($183,823).
By the decision of the CBA, the minimum authorized capital of the United Agrarian Insurance Company was determined at 1 million manat ($588,235). However, in order to ensure financial stability and comply with prudential norms, the company has the right to establish authorized capital in an amount exceeding the minimum value established by the state.
(1 USD = 1.7 manat on Aug. 22)
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