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Azerbaijan to establish Joint Agrarian Insurance company

21 August 2020 16:00 (UTC+04:00)
Azerbaijan to establish Joint Agrarian Insurance company

By Ayya Lmahamad

Azerbaijan will establish a Joint Agrarian Insurance company as part of measures aimed at introduction of agrarian insurance mechanism, the Ministry of Agriculture reported on August 21.

For this purpose all companies working in the field of insurance in the country, except life insurance, were offered to participate in the authorized capital of the new joint insurance company.

Some companies have already agreed to participate in the joint capital of the new company, in connection with which a meeting of company’s shareholders was held, corresponding decision was taken.

On July 24, the constituent meeting for the establishment of the “Joint Agrarian Insurance Company” was held. The meeting was attended by seven insurance companies, which expressed their intention to participate in the activities of the new company. Following the meeting, the decision to establish the company was taken.

Furthermore, the Central Bank has received a preliminary application for permission of the company’s activity.

It should be noted that by the decision of the CBA of March 4, 2020, the minimum joint capital of the new company is set at AZN 1 million ($588,235).

At the same time, in order to ensure high financial stability and compliance with prudential norms, the company has the right to form a share capital in excess of the minimum amount set by the state.

According to the agreement between the founders, the authorized capital of " Joint Agrarian Insurance Company " is AZN 2.1 million ($1.2M). The share of each founder is envisaged at the rate of AZN 312,500 ($183,823).

Under the Agrarian Insurance Fund, all companies engaged in insurance activities in the country, except life insurance, may participate in the activities of "Joint Agrarian Insurance Company".

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