Qala Sığorta, a top-5 insurer in Azerbaijan based on FY2025 results, reported net profit of AZN 2.89 million (~EUR 1.48 million) in the first quarter of 2026, down 35.21% from AZN 4.46 million in the same period of 2025, ABC.AZ reports.

According to ABC.AZ, citing the company's report, due to withdrawal of retained earnings, the amount decreased from AZN 25.73 million in the first quarter of 2025 to AZN 14.09 million in the same period this year. As a result, the company's capital buffer dropped from AZN 18.29 million to AZN 3.66 million over the year.

It is noted that the key drivers of the decline in profit were an 18.73% decline in total revenue to AZN 20.77 million and a significant decrease in core operating income. At the same time, a positive impact on the change in net insurance reserves, while partially offsetting the loss (AZN 5.92 million this year vs -AZN 2.93 million in the previous year), was unable to prevent the overall decline.

During the reporting period, Qala Sığorta's expenses totaled AZN 17.16 million, which represents a decrease of 14.12%, the source added.

*EUR 1 = AZN 1.95 (as of March 31, 2026)