Insurers boost investment in securities in Azerbaijan

Insurers boost investment in securities in Azerbaijan
# 15 December 2008 10:01 (UTC +04:00)
The amount of bank deposits by insurers rose 39.1% and its share in assets decreased 3.7 percentage points from early this year.
As of October 1, the total assets owned by insurance companies stood at AZN 235.9 million, up 50.5% on early this year.
In additional to deposits, receivables have a remarkable share in the insurers’ assets.

Insurers’ investment in securities reached AZN 16. million, up 3.6 times on early this year.
Of the investment in papers, AZN 15.019 went to short-term securities, leaving AZN 1.093 million to long-term ones.
There were a 3.6 times and a 9-times growth in these figures respectively.
As shown, insurers’ interest in stock market, especially T-bills by the Ministry of Finance is growing rapidly.
However, the fact that about half of assets are kept in bank deposits is not a positive case.
As a matter of fact, the number of financial instruments as high-yielding and liquid as bank deposits is very limited on Azerbaijan’s financial market.
Insurers are of the opinion that they could boost investment if the number and range of these instrument increases.