CIG Pannónia to raise capital at general insurance unit
The board of CIG Pannónia Life Insurance decided on Thursday to raise capital at its general insurance unit by HUF 1.5 billion and modify the unitʼs dividend policy, Hungarian news agency MTI reports.
The board decided to issue 30 CIG Pannónia First Hungarian General Insurance (EMABIT) shares to be subscribed in a private placement at an issue price of HUF 50 million per share. The raise will bring the number of EMABIT shares to 1,060.
The board decided EMABIT would pay all of its after-tax profit as dividend as long as its solvency capital requirement remains over the 160% threshold.
The board also decided to set up an financial intermediary unit to broker insurance and financial products, thus "expanding the companyʼs distribution channels and boosting new business volume", and to establish an employee stock ownership plan (ESOP).
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