Baku, Azerbaijan, April 29
By Emin Aliyev - Trend:
Azerbaijan approved a list of documents required for the approval of merging insurance companies.
The relevant decision of the Finance Ministry was published in the State Register of Legal Acts of Azerbaijan.
In particular, while appealing for the merger the companies will have to provide information on all active contracts and the volume of premiums on them.
Furthermore, the companies wishing to merge will have to submit information on the cooperation among themselves over the past three years, summarized financial statements, as well as documents from the state legal entities registry of the State Insurance Supervision Service under the Ministry of Finance of Azerbaijan.
It should be noted that in Azerbaijani market, until now, the practice of merging insurance companies has not taken place, unlike in other developed markets.
Today the consolidation of insurance companies is a topical issue for Azerbaijan due to the approval of new schedule of the insurance market capitalization.
By the decision of the country's Finance Ministry, the minimum amount of the total capital of non-life insurers is set at five million manat.
The requirement for the minimum amount of total capital for life insurance companies will be doubled by January 1, 2017, to 10 million manat.
By January 1, 2014 the life-insuring companies operating in Azerbaijan will have to have a total capital with a minimum size of five million manat, from January 1, 2015 - 6.5 million manat, from January, 1, 2016 - eight million manat, from January 1, 2017 - 10 million manat.
The Finance Ministry has also doubled a minimum amount of total capital of reinsurance companies from the current 10 million to 20 million manat.
There are 28 insurance in Azerbaijan and a reinsurance company operating in the insurance market of country.
Due to non-compliance with the capitalization requirements, the licenses of "Royal Sigorta" and "Gunay Sigorta" insurance companies were suspended on February 24, 2014.
The official exchange rate on April 29 is 0,7843 AZN /
USD.
Translated by S.I.
Edited by S.I.
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