SHARE OF FLESH COMPANY IN CAPITAL OF ALIANZ INSURANCE COMPANY
INCREASED TO 55%

YEREVAN, JANUARY 18. ARMINFO. In connection with a governmental
decision to increase the minimum size of the authorized capital of
insurance companies, the share of the largest oil trader in Armenia,
Flesh company, in the capital of Alianz Insurance Company has been
increased to 55%. Executive Director of Alianz IC Karen Vahramyan told
ARMINFO.

He said that Flesh has been the promoter of Alianz IC since 1997, with
its share being 25%. Since promoters are provided with a top-priority
right to buy out shares, a decision was made to increase the size of
the authorized capital to the demanded size due to an increase in the
share of the above oil trader company. Vahramyan said that in
connection with redistribution of the participants’ shares, no
cardinal changes are expected in the company’s management and tariff
policy. The company has been just renamed into Alianz Flesh. Vahramyan
noted that the authorized capital will be increased in 2006 at the
expense of undistributed profits. He added that already at the end of
2004, a 100% growth of profits was secured due to an 80% increase in
the volume of insurance premiums and some decrease in the size of
compensations.

By the end of the current year, the volumes of insurance premiums and
profits will also be doubled due to an increase in insurance
operations and maintenance of last year’s level of risk
operations. “We intend to activate transport and property insurance as
well as to participate in the programs of compulsory automobile
liability insurance in case if a relevant law is adopted,” he said.
Vahramyan also pointed out that despite the increase in the share of
Flesh company, Alianz will not insure the imported fuel and
lubricants.

It should be noted that in conformity with the governmental decision,
starting from January of 2005, the minimum size of the authorized
capital of insurance companies was increased to 100 mln AMD. In 2006,
this figure will total 200 mln AMD, in 2007 – 350 mln AMD, and already
in 2008 – 500 mln AMD.

It is noteworthy that as a result of the first half of 2004, the
assets of Alianz IC totaled 113.9 mln AMD, funds – 29.5 mln AMD. At
the same time, the volume of premiums reached 174 mln, compensations –
2 mln AMD. The profits of the company totaled 10.5 mln AMD on June 1.