March 6, 2019, Tbilisi, Georgia: According to GPI Holding’s Supervisory Board decision the share capital of the company has been increased by GEL 6 mln and now equals to GEL 27 mln.
The mentioned decision was made on the Supervisory Board meeting in December, 2018 and was executed the same month.
Paata Lomadze, General Director of GPI Holding: “With this move we have once again acknowledged that GPI Holding’s position in the Georgian market is even stronger and financially stable. Decision regarding the increase of share capital is an obvious demonstration of our shareholders (Vienna Insurance Group) commitment to the Georgian insurance market and the long term perspectives. Keeping this in mind, we and our shareholders are very enthusiastic regarding the imminent reforms in our country, that would boost performance of insurance companies and encourage rapid growth of the market, namely the law of obligatory insurance of Motor Third Party Liability and various measures to establish fair and healthy competition rules.”
The regulation regarding the share capital amount (solvency I) was adopted in 2017 by the Insurance State Supervisory Service of Georgia and GPI Holding was in full compliance with the requirements as provided by the regulation. On top of this, as a member of Europe’s one of the largest insurance groups, GPI Holding’s liquidity and solvency standards fall under the group wide standards which are at the moment more sound and strict as compared to the local standards. Therefore the main reason of share capital increase was to further support development and strong position of the company in the local market.
GPI Holding is the leading insurance company in Georgia, with the largest market share of 21%, according to 2018 data of first three quarters of Insurance State Supervisory Service of Georgia. The company is one of the leaders among Georgian companies in corporate as well as retail insurance lines. At the same period amount of total claims paid made GEL 55mln.
Vienna Insurance Group is the leading insurance company in Central and Eastern Europe with 50 companies in 25 countries. In the first three quarters of 2018 VIG’s gross written premium was EUR7.4 BLN , while the result before taxes – EUR 352ML.