MBASK INSURANCE COMPANY

Location:

Azerbaijan

Project number:

34998

Business sector:

Insurance, Pension, Mutual Funds

Notice type:

Private

Environmental category:

FI

Approval date:

11 Jan 2005

Status:

Complete

PSD disclosed:

11 Nov 2004

Project Description

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.

Transition Impact

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.
 

The Client

MBASK Insurance Company, a limited liability company licensed and operating as an insurance company in Azerbaijan.

EBRD Finance

Approximately US$ 1 million equity.

Project Cost

Approximately US$ 1.5 million.

Environmental Impact

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.

Technical Cooperation

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.

Company Contact

Nofal K. Rzayev, Advisor to the Board
MBASK Insurance Company
90/9Hazi Aslanov Street
Baku AZ1095
Azerbaijan
 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

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