Agras-Omniasig merger to be finalised by 2001

The merger between insurance companies Agras and Omniasig Agricultural Insurance could be finalised by the end of the current year, as soon as a common evaluator for the two companies is found.

“I hope that the company that will be created following this merger will continue to be listed on Bucharest Stock Exchange (BVB),” Manea Gheorghe, Agras economic manager, told Ziarul Financiar.

The Agras company on the first half of the current year registered net profit amounting to 3.7 billion lei, a lower value as compared to net profit worth 5.1 billion lei posted after the first six months of last year. Agras insurance company has 41 subsidiaries, of which the latest was founded in Bucharest.

“This year, the agricultural sector hardly received any credits. This is why very few vegetal insurance policies have been concluded. We had to get organised in order to sell car insurance policies and I might say that this has been quite an interesting experience. Moreover, we have recently launched professional insurance policies for doctors, which are still at the beginning, but we hope they will gain an ever bigger market share,” Manea Gheorghe added.

Agras company’s turnover amounted to 25 billion lei over the first half of the current year, against 18 billion lei posted during in the similar period of last year, which represents a 38 percent growth. The increase in turnover was supported by the fact that Agras this year started to sell CASCO and RCA (car insurance) policies.

“We cashed about seven billion lei in bonuses from RCA insurance policies, while as to agricultural insurance policies we maintained our returns at a level of ten billion lei,” Manea Gheorghe explained.

He added that the recently founded Bucharest subsidiary brought almost half of the total cash-ins obtained from car insurance policies.

Agras registered total revenues standing at 43.6 billion lei on the first half of the current year, while total expenditures amounted to 38.6 billion lei.

Agras company’s shareholding structure includes Banca Agricola (the Agricultural Bank), with 20 percent of stock, brokerage company Actiuni Nationale, which owns 5 percent of the share capital, Lupetin Giovanni, with 5.57 percent of the shares, and Omniasig insurance company, owning 49.99 percent of Agras’ share capital.

The shares of the Agras company have been traded on Bucharest Stock Exchange (BVB) since July 15, 1999. The last closing price of these shares on BVB amounted to 3,000 lei for one share.