Azernews.Az

BAKU – French group AXA, the second biggest insurance company in Europe, has purchased a controlling stake in Azerbaijan’s privately held insurer MBASK, according to an agreement signed in Baku on Thursday.

AXA acquired a 51 percent stake in MBASK by buying shares from the European Bank for Reconstruction and Development and the company's other major shareholder, Eldar Garibov who still has a 49 percent stake.

30 percent of MBASK’s stock was previously held by EBRD, while 70 percent by Garibov.

AXA did not disclose financial terms of the deal, carried out by a subsidiary, AXA Seguros Generales.

"The insurance market in Azerbaijan is currently quite small, about 0.5 percent of the country's gross domestic product ... Our participation will help to increase this share to 2-3 percent," Frederic Flejou, head of new market development for AXA's Mediterranean and Latin America operations, told reporters. "We would like to see this indicator at the level of 8.0 percent in the future."

MBASK, which has operated in Azerbaijan since 1992 and is one of the country's top 10 insurers, provides 29 types of insurance to its customers. The company employs 100 people and runs five regional subsidiaries. As of October 1, 2010, its capital stock amounted to 5.73 million manats (over $7.16 million).

AXA, the