Uzbek insurance company to start share allocation of shares to amount of $3,8 millions

Business Materials 26 September 2012 17:53 (UTC +04:00)

Uzbekistan, Tashkent, Sept. 26 /Trend D. Azizov/

Uzagrosugurta, which is among five major insurance companies in Uzbekistan, will start allocating shares to the sum of 7.427 billion sums, planning to increase authorized capital by 3.7 tims- to 10.215 billion sums, the company told Trend on Wednesday.

The company representative noted that the Centre on Coordination and Control of Securities Market has registered the prospect of emissions to the amount of 7 billion 427.3 million sums. The emission consists of 5 million 941.84 thousands of ordinary shares to the nominal cost of 1.25 thousand sums each.

Uzbek President Islam Karimov's decree on 'Measures on further improvement of the Uzagrosugurta state insurance company's capitalisation level' adopted on July 5 this year envisages measures to increase the authorised capital.

According to the document, the Ministry of Finance will purchase securities to the amount of 5.615 billion sums (75.6 percent of additional emission), Uzkhlopkoprom- to the amount of 978.1 million sums (13.2 percent), Agrobank - to 628.3 million sums (8.4 percent, Turonbank -171 million sums (2.3 percent), Kishlok kurilish bank (Bank of agricultural construction)-35 million sums.

Uzagrosugurta's authorised capital was formed to the amount of 2.788 billion soums. It consists of 2.21 million common shares and 20,000 preferred shares of 1,250 soums each.
Uzagrosugurta's biggest shareholders are the Finance Ministry with 75.8 per cent in the share capital and state association Uzhlopkoprom with 13.1 per cent.

Uzagrosugurta was created in 1997 to provide services for the comprehensive insurance of companies in the Uzbek agricultural sector. The company provides services on more than 70 types of insurance through 13 regional directorates, 174 district and municipal offices, 20 subsidiaries operating throughout the territory of Uzbekistan and 426 offices in remote settlements.

Uzagrosugurta increased its collection of premiums by 29.8 per cent - to 37.5 billion soums in 2011, while the volume of payments increased by 23.3 per cent - to 5.74 billion soums.
At present 37 insurance companies are operating in the country. As many as two of them operate in life insurance, one reinsurance company and 34 insurance companies operate in common insurance.

Besides these companies there are three insurance brokers in the insurance market, two actuarial organisations and four companies rendering services of insurance assistance and four adjusting and survey organisations.

Uzbek insurance companies increased its collection of premiums by 36.6 per cent up to 231.6 billion soum in 2011 compared to 2010. The total amount of insurance payments made on all types of insurance increased by 67 per cent to 45.1 billion soums.

The official exchange rate is 1.892.59 soums per $1 - 1938,60 for Sept.26