Abu Dhabi – Mubasher: United Insurance Company (UIC) said, in a bourse filing Wednesday, it decided to postpone the execution of the decision taken by the extraordinary general meeting on 2 July as regards the company’s capital increase.
The execution of the capital increase will be delayed until further notice, since the suggested dates for subscription and availability of pre-emptive shares in the market may fall during summer’s holidays, according to the company.
The company’s EGM earlier 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 each.
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.
