Bulgarian Insurer Euroins To Seek 5.1 Mln Euro in Capital Hike

The company will seek shareholders’ approval on November 28 to issue 2,499,998 new shares with a face value of one lev and issue price of 4.0 levs, the company said in a statement filed with the Bulgarian Stock Exchange’s (BSE) information service X3 News.

The move will raise Euroins’s nominal capital to some 12.5 million levs.

“Amid the global financial crisis the management of the company finds it appropriate to boost shareholders’ equity in view of the market challenges it will have to meet,” Euroins said.

Euroins will need additional funds to take over the reinsurance operations of the other insurance subsidiaries of EuroIns Insurance Group (EIG), it said.

EIG, which holds 70% of Euroins, has stakes in insurance companies in Romania, Macedonia and Serbia.

Euroins expects to raise its premium income to 90 million levs this year, up from 66.6 million levs in 2007, which also requires additional reserves and own funds, the insurer added.

Shares of Euroins gained 2.56 % to 4.0 levs ($2.8/2.0 euro) on the stock exchange in Sofia on Monday. The statement was published after the close of trading.

Earlier this year Greece-based fund manager Global Finance bought an undisclosed minority stake in EIG for 26 million euro from Bulgarian financial and industrial group Eurohold Bulgaria.

(1 euro = 1.95583 Bulgrian levs)