BAKU, Azerbaijan, October 3. Azerbaijan’s insurance sector kept its head above water in the first half of the year, but overall profitability took a hit compared to the same stretch last year.
Data obtained by Trend from the Central Bank of Azerbaijan (CBA) indicates that the sector experienced a contraction in net profit, declining by 17 percent, equating to a reduction of 17 million manat ($10 million), resulting in a total of 81 million manat ($47.6 million).
Non-life insurance entities experienced a contraction in profitability, diminishing by 14 million manat ($8.2 million) to a total of 42 million manat ($24.7 million). Concurrently, life insurance firms reported a decrement in earnings, decreasing by 2 million manat ($1.1 million) to reach 39 million manat ($22.9 million).
The sector’s loss ratio increased sharply, rising by 7 percentage points to 85 percent. Higher loss ratios in several insurance classes with significant market share contributed to the overall increase. For instance, the mandatory motor vehicle liability insurance segment, holding a 25 percent market share, recorded a 9-point rise in the loss ratio to 80 percent, a 3-point drop in the expense ratio to 29 percent, and a total combined loss ratio increase of six points to 109 percent.
