Uzbek insurance company increases authorized capital by 3.7 times

Business Materials 24 December 2012 20:02 (UTC +04:00)

Uzbekistan, Tashkent, Dec. 24 / Trend D.Azizov /

Uzagrosugurta state joint-stock insurance company, one of the top five insurance companies of Uzbekistan, has increased its authorized capital by 3.7 times - up to 10.215 billion soums (5.2 million euros), the company's management told Trend on Monday.

The company's authorized capital was increased by placing additional shares for a total amount of 7.427 billion soums. In total, the company placed 5.941.840 ordinary shares with a nominal value of 1.250 soums.

The securities were placed by private subscription among shareholders of the company.

The bulk of the additional emission, namely 4.491.920 shares worth 5.615 billion soums were purchased by the country's Finance Ministry. Uzpahtasanoat association purchased 782.480 shares for a total amount of 978.1 million soums, while Agrobank bought 502.640 shares worth 628.3 million soums, Turonbank - 136.800 shares worth 171 million soums, Rural Construction Bank ( Qishloq Qurilish Bank) - 28 million shares worth 35 million soums.

The Finance Ministry with 75.6 per cent in the authorized capital and the Uzhlopkoprom state association with 11.2 percent remained the largest shareholders of Uzagrosugurta following the placement of additional emission.

Previously it was reported that measures to increase the authorised capital are taken in accordance with 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.

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 their 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 on December 24 is 1980.25 sum / $ 1.