Interview with Fuad KULIEV, Chairman of the Management Board at AZ Re
Fuad KULIEV: The financial results of AZ Re have been quite positive for the first half year 2018 as we see below, which indicates the effectiveness of the company and the appropriate use of assets, as well as fixed and working capital.
Loss ratio is at a low level, which is traditional for the company, thanks to healthy underwriting policy and properly selected risk assessment criteria. We are sure that these figures, along with others, will allow us to renew our A.M. Best rating, at least without lowering. Our credit rating (bbb-) has remained unchanged every year since it was first received 4 years ago and is one level higher than the country rating.
- Reinsurance premiums: USD 23,49 million (AZN 39,94 million)
- Paid claims: USD 3,21 million (AZN 5,46 million)
- Income:USD 21,12 million (AZN 35,91 million)
- Expenses:USD 10,43 million (AZN 17,73 million)
- Loss ratio: 20,79%
- Combined ratio: 38,38%
XPRIMM: What is the state of contract renewal this year? Is there a significant difference from last year in terms of conditions, tariffs, risks, or total number of contracts?
FK:There is no significant difference in terms of conditions, tariffs, and risks from last year. We prolonged an absolute majority of last year's contracts and also signed new ones. We are glad that the company's good reputation, both in the local market and the international market, and our excellent customer service allow us to grow.
XPRIMM: How did NatCat events affect your company? Were there any big losses or problems with claim settlement and have any tariffs changed in this regard?
FK: We had no NatCat events this year in Azerbaijan. As for the international market - our company has become a participant in some reinsurance programs that were influenced by NatCat, but the share of Az Re's participation was rather small, thus it had no significant effect on our portfolio, but it did result in a change in the leader's tariff for the next year.
XPRIMM: How is your cooperation with the Russian market and the markets of other CIS countries, based on the 1H2018 result and full year perspectives?
FK: For the first time ever, the share of Az Re's international business exceeded 10% of the portfolio. One of the Az Re's targets in business development is expanding cooperation with other countries, we are increasingly cooperating with the Russian market, CSI markets and neighboring countries, like Turkey and Georgia.
XPRIMM: What are your expectations from the Baden-Baden Meeting this year?
FK: As in previous years, we confirmed many discussions with existing partners as well as with potential clients. We plan to expand our cooperation with foreign countries and we hope to present our company as stable and trustworthy for partners.