The proposed project envisages subscription to equity in MBASK Insurance Company to acquire a 30% stake.
By providing an additional source of financing, the EBRD’s investment will assist MBASK Insurance Company to strengthen its capital base and enable it to develop its infrastructure, sales network and to introduce new commercial and personal lines insurance products.
The project will promote the development of, and competition in, the provision of primarily non-life insurance products in Azerbaijan (where current insurance penetration, measured as is significantly less than 1% of GDP).
Through its representation on the company’s Supervisory Board, and through the provision of technical assistance, the EBRD will contribute to the improvement of MBASK Insurance Company’s business practices and provide advice on key insurance related issues. This will enable MBASK Insurance Company to meet, and demonstrate to the market, international standards of insurance practice.
MBASK Insurance Company, a limited liability company licensed and operating as an insurance company in Azerbaijan.
Approximately US$ 1 million equity.
Approximately US$ 1.5 million.
The environmental risks associated with MBASK Insurance Company’s operations may include the companies’ insurance products to the extent that they cover claims for environment-related damage (e.g. third part liability, property damage, fire and natural disaster, health).
However, in order to mitigate environmental impact MBASK Insurance Company will conduct its insurance operations (both underwriting and investment activities) in accordance with the EBRD’s Guidelines for Investments in the Insurance Sector. The Guidelines require that the Company’s policy and products include mechanisms and tools which allow Company staff to identify, assess, and control any environmental risks which may be associated with a particular customer or product, and to ensure that insurance cover is not provided for activities included on EBRD’s Environmental Exclusion List. MBASK Insurance Company will also be required to submit an Annual Environmental Report to the EBRD.
It is anticipated that, subject to donor approval, technical co-operation funding of will be provided from the 2001 EU-EBRD Investment Preparation Facility (2001). A firm or suitably qualified individual will be selected to provide management support services to MBASK Insurance Company.
Nofal K. Rzayev, Advisor to the Board
MBASK Insurance Company
90/9Hazi Aslanov Street
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Text of the PIP