Uzbekistan will sell its shares in three largest Uzbek insurance companies by 2010, a special programme on reforms and development of insurance market said.

As earlier reported, Uzbek President Islam Karimov signed a resolution “On measures for further reforms and development of the insurance services market" on 10 April, which approved a programe on reforms and development of insurance market.

The programme said that the state share in charter capitals of three largest Uzbek insurance companies – Uzbekinvest, Uzagrosugurta and Kafolat – will be sold by 2010. On the result of the first quarter 2006, these three companies hold 63.4% of insurance market of Uzbekistan.

Uzbekinvest national export-import company founded in 1994. Uzbek Finance Ministry owns 83.3% in the company, while National Bank of Uzbekistan holds 16.6% shares. It is expected that the company will be re-organized from state agency on export-import insurance to joint-stock company. The share of the company in Uzbek market made up 43% in January-March 2007. Charter capital of Uzbekinvest is US$60 million.

Uzagrosugurta state joint stock insurance company founded in 1997 and it is specializing on insurance of enterprises of agriculture sector. In summer 2006, the company received additional licenses and now can render insurance services in all classes, except life insurance.

Charter capital of Uzagrosugurta is 2.23 billion soums. Main shareholders are Uzbek Finance Ministry (75.8%), Uzkhlopkoprom (13.1%), Uzhleboprodukt (5%) are Pakhta Bank (2.9%). The company’s share in Uzbek market made up 15.2% in the first quarter of 2007.

In July 2006, Uzbekistan announced that it will decrease its share to 41% in 2006-08. The government planed to sell 34.6% to foreign investors through tender.

Kafolat state joint stock insurance company founded in 1997 and its charter capital is equal to 2 billion soums. The company has over 513 shareholders. Main shareholders are Uzbek Finance Ministry (25.97%) and Uzagrosugurta (29.94%). The share of Kafolat in Uzbek market comprised 5.2% in January-March 2007.

As of 31 March 2007, over 25 insurance companies operated in Uzbekistan, of which only one works in life insurance segment. According to first quarter results, the Uzbek insurance companies received insurance premiums for 19.7 billion soums and paid compensation for 1.5 billion soums.