CBA grants license to local agro-insurance company

By Trend

The Central Bank of Azerbaijan (CBA) has issued a license to the United Agricultural Insurance Company, in order to carry out insurance activities, Trend reports with reference to the Azerbaijani Agricultural Insurance Fund.

The United Agricultural Insurance Company is the managing company for agricultural insurance operating in Azerbaijan, said the fund.

The parent companies will act as insurance intermediary companies in the agricultural insurance system, the fund noted.

The authorized capital of the company is 2.2 million manat ($1.29 million). Its founders are the following 7 insurance companies: PASHA Insurance, Gala Insurance, Mega Insurance, Xalq Insurance, AzSigorta, Baki Sigorta, and Azerbaijani Industry Insurance OJSC, with an equal share in the authorized capital - 312,500 manat ($183,823) each.

By the decision of the CBA, the minimum authorized capital of the United Agricultural Insurance Company was determined at 1 million manat ($588,235). However, in order to ensure financial stability and observe prudential norms, the company has the right to establish authorized capital in an amount exceeding the minimum volume established by the state.

(1 USD = 1.7 AZN on Oct. 16)