Uzbek insurance company increases authorized capital by over 2 times

Business Materials 20 August 2014 18:36 (UTC +04:00)

Tashkent, Uzbekistan, Aug. 20

By Demir Azizov - Trend:

Uzbek state-run joint-stock insurance company Uzagrosugurta, one of the top five largest insurers in Uzbekistan, issued shares emission worth over 23,535 billion soums to increase the authorized capital by 2.2 times, a representative of the company told Trend Aug. 20.

He said that on Aug. 18, the Uzbek Center for Coordination and Development of Securities Market registered the issue of the insurance company's shares worth 23,534,899,200 soums.

Earlier it was reported that the issue is held under the decision of the annual general meeting of the insurance company's shareholders, which was held in May.

Under the shareholders' decision, the increase in the insurance company's authorized capital is being carried out by means of the directing the net profit for 2014 to increasing the nominal value of the shares.

Some 12,666 billion soums or 86.4 percent of the net profit earned in 2013 (14.66 billion soums) is directed to increase the authorized capital.

The par value of each share will be increased from 1,330 soums to 2,880 soums.

The securities will be placed in a closed subscription among shareholders by converting old shares into the new ones at par value of 2.880 soums each.

Uzagrosugurta's authorized capital currently stands at 10.868 billion soums.

The company's largest shareholders are the Finance Ministry of Uzbekistan (75.8 percent in the share capital), and the state-run association Uzkhlopkoprom (13.1 percent).

Uzagrosugurta was created in 1997 to provide services for comprehensive insurance of enterprises of the agricultural sector of Uzbek economy.

The company offers over 70 types of insurance through 13 regional directorates, 173 district and municipal offices, 20 subsidiaries operating throughout Uzbekistan, and 426 agency offices in the country's remote areas.

Uzagrosugurta increased in 2013 the collection of insurance premiums by 33.4 percent up to 61.653 billion soums versus 2012.

The insurance premiums also increased in 2013 by 9.3 percent up to 8.378 billion soums.

Currently, Uzbekistan has 31 insurance companies - two of them are life insurance companies, one - reinsurance company, and 28 - general insurance companies.

The official exchange rate for August 20 is 2344.38 soum/$ 1.

Edited by CN