Komercni banka announced yesterday evening that Komercni pojistovna, KB’s 100% insurance subsidiary, will increase its share capital by CZK 105 mil. to CZK 555 mil. (Source: CTK). This follows earlier reports that KB will firm up the subsidiary and help expand the sale of insurance products. After KB created almost CZK 300 mil. in provisions for its equity investment in the insurance subsidiary in Q3, it is now conducting an audit of the company, which should be completed in the first quarter of 2002. Further measures have been expected after the audit’s completion, the capital increase might suggest the urgency of the measures.
(Jan Hajek)