The agency of insurance protection of private enterprise and small business, Madad has increased its equity capital to 7 billion soums through addition stock floats.
The company’s press service said by the end of this year the placement of the float of 4.9 billion soums was planned. Moreover, the company also plans the placement of 7 million non-cash common inscribed stock with the par value of 700 soums each. These will be distributed through open registration using the right of privilege registration among existing shareholders.

“This may seem as mere dry numbers, but there is a great deal of hard work of the specialists and shareholders of the Agency behind them. This work was carried out to achieve the targets set in the Presidential Resolution "On measures to further reform and develop the insurance services market," representatives of Madad note.

The abovementioned resolution outlines the need to expand the volumes and range of insurance services being provided, and enhance their quality. The fulfillment of these tasks can be made possible through the building up of a substantial financial base by insurance organizations. This financial base should correspond in scale to the tasks set for the country’s economy as a whole.

The reforms taking place in the economy of Uzbekistan require substantial financial investments, in particular foreign investments. All this, in turn, should be strongly protected against accidental entrepreneurial, natural-environmental, and man-caused risks.

The work being carried out by the Agency to increase the size of its equity capital is aimed primarily at meeting these tasks, the specialists of Madad company claim.

Large, comparable to the capitals of commercial banks of Uzbekistan, the equity capital of the Agency should allow it to attract new clients and maintain stable solvency, and consequently, will provide it a competitive advantage in the insurance market, which in turn, will increase the scale of its insurance operations.

The reliability and financial stability of the Agency will provide it an opportunity to take on larger risks in the sphere of insurance and efficiently manage the reinsurance activity. It will open new opportunities for integration into international insurance market and active investment activity in accordance with the legislation of the Republic of Uzbekistan.

The equity capital of the Agency consists of 10 million common shares. The main shareholders are Direct Associates Limited, Diamond Age Russian Investments Limited, State Property Committee of Uzbekistan, National Bank of Uzbekistan for Foreign Economic Activity, MicroCredit Bank and Uzpromstroybank. The founder shareholders are three structures - Chamber of Industry and Commerce, Farmers’ Association of Uzbekistan and Women’s Committee of Uzbekistan. The agency’s shareholders also include 238 individuals, whose aggregate share constitutes 35% of the total equity.