Astra discusses share capital increase

Astra Asigurari is likely to boost its share capital by as much as 10 million euros over the next two months, through contributions in cash by shareholders.

At present, Astra”s capital stands at 45 million euros (157.7 million RON). The company”s stakeholders are Dan Adamescu, through Nova Trade company, who owns more than 72.6 percent in stock, and the Austrian group Uniqa, with a 27 percent stake.

“This capital increase will be discussed during the General Meeting of Shareholders on April 28th in order to achieve a strengthening of the financial situation in the company and to cover last year”s losses,” stated Dacian Vinereanu, financial manager of Astra.

He did not disclose the financial figures for 2005. After the first nine months of last year, Astra derived income worth 57,000 euros. The insurer last year logged gross underwritten premiums worth around 51 million euros, similar to the sum posted in 2004. For this year, Astra has budgeted turnover worth 86 million euros, accounting for an increase by over 65 percent in euros from 2005.

“As regards to the profit, we will be in the black, but not by much,” says the economic manager of Astra.

In the first quarter of this year, Astra”s turnover doubled from the similar period last year, according to Vinereanu. He said Astra would release more details related to its first-quarter figures next week.

In the near future, Astra will start selling insurance policies through Raiffeisen Bank.

“We want to bolster our position on bancassurance this year. We have a special relation with Raiffeisen, since Uniqa (which owns 27% in Astra i.e.) and Raiffeisen are part of the same group,” explains Vinereanu.

Astra is also considering plans to enter the health insurance market this year.

“This is an intention of ours. This is likely to happen this year or maybe next year. This market is quite uncertain,” says Radu Mustatea, Astra” sales manager.

Astra is listed on the RASDAQ Basic Tier of the Bucharest Stock Exchange. The company”s capitalisation is worth over 47 million euros (almost 166 million RON) against a price of 2.8 RON per share.