Abu Dhabi – Mubasher: United Insurance Company (UIC) said its shareholders have approved a capital increase by AED 50 million, from AED 100 million to AED 150 million, through the issuance of 50 million new shares at par value of AED 1 per share, the company said in a filing to the Abu Dhabi Securities Exchange (ADX) on Sunday.
Shareholders unanimously approved the capital hike as well as the scheme to boost the company’s operations and resolve impairment of losses, which amounted to 50% of UIC’s paid up capital.
The insurance company’s shareholders decided to reduce accumulated losses worth AED 73.41 million by using total general reserves worth AED 2.97 million, reducing losses to AED 70.44 million.
Moreover, UIC’s shareholders endorsed the proposal to allow foreigners to own no more than the legal percentage of 25% in the company, according to the filing.
UIC reported a 22% decline in losses to AED 7 million ($1.9 million) in the first quarter of 2015 compared to a loss of AED 9 million ($2.45 million) in the same period in 2014.
The insurance firm previously said it suffered a massive loss of AED 51.8 million in the fiscal year 2014 against a net profit of AED 8.44 million in 2013.
