BAKU, Azerbaijan, June 7. The net profit of Azerbaijan's insurance sector notably increased from January through March 2023, Trend reports.
According to the Central Bank of Azerbaijan (CBA), this figure reached 56.2 million manat ($33.06 million), up by 42 percent on annual basis.
The total income of the insurance market participants in the first quarter of this year grew by 48.1 percent compared to the same period in 2022 and amounted to 280.9 million manat ($165.2 million).
For the reporting period, insurance fees made up majority of the total income, growing by 35.2 percent up to 360.2 million manat ($211.8 million), while negative net insurance reserves equaled 122.4 million manat ($72 million) against 101.18 million manat ($59.5 million), negatively affecting the total income.
Meanwhile, the investment income of the insurance market totaled 25.58 million manat or $15.05 million (a growth of 41.6 percent), and the share of re-insurers in insurance fees rose by 2.3 times to 1.6 million manat ($940,000).
Besides, from January through March 2023, insurance spending increased by 49.3 percent, reaching 216 million manat ($127 million).
Insurance payments for the reporting period totaled 105.35 million manat ($61.97 million), having increased by 1.7 times, and reinsurance payments – 39.15 million manat ($23 million), up by 54.4 percent year on year.
At the same time, business expenses grew by 36.7 percent up to 61.67 million manat ($36.28 million).
In the first quarter of this year, insurers paid profit tax in the amount of 61.67 million manat ($36.28 million).
As of April 1, 2023, 35 legal entities were registered in the insurance sector of Azerbaijan, of which 34 are private legal entities (six companies have foreign capital).
Currently, there are 20 insurance companies in the country, out of which one is reinsurance and 11 are brokerage companies.
In 2022, the total net profit of Azerbaijani insurers amounted to 74.3 million manat ($43 million).