annual report grupo security - Banco Security

annual report 2007grupo securitypage 99O t h e r r e s e r v e sThese are basically the Company’s percentage participation in the matching reserve in the indirect subsidiary Seguros Vida SecurityPrevisión S.A., the fluctuation in the indirect subsidiary Compañía de Seguros Generales Penta Security S.A., and in the reserve forfluctuations in investments and the accounting adjustment in the direct subsidiary Banco Security.The detail of changes during 2007 and 2006 is as follows:2007ThCh$2006ThCh$Security Rentas Seguros de Vida S.A. - 1,604,647Inversiones Seguros Ltda. 992,767 17,737Banco Security (2,239,342) 420,899Total (*) (1,246,575) 2,043,283(*) : Historical valuesD e v e l o p m e n t s t a g e a c c u m u l a t e d d e f i c i tThis is the percentage participation in the development stage deficit of the direct subsidiary Inmobiliaria Security S.A. and ServiciosSecurity Ltda. This deficit will be absorbed by future income, in accordance with Circular No.1,819.D i v i d e n d sThe policy agreed to by the shareholders is to distribute 50% of net cash income received by the Company from direct subsidiaries duringthe year and split the payment into two dividends - one an interim and the other a final dividend. Additionally, the Board of Directorshas been authorized to decide additional dividend distributions with charge to retained earnings if the Company’s financial condition, inthe opinion of the Board, allows it.During 2006, a Ch$3.75 final dividend per share was paid, which added to the October 2005 interim dividend, makes a final dividend ofCh$4.5 charged to 2005 results.Additionally, in September 2006, the Board of Directors agreed to pay an additional dividend of Ch$1.15 per share, and an interimdividend of Ch$1 which was paid during October 2006.On April 2007, a Ch$ 4.15 final dividend per share was paid, which added to the interim dividend of Ch$1 and the additional dividend ofCh$1.15 paid in October 2006, makes a final dividend of Ch$ 6.3 charged to 2006 net income.On October 4, 2007 the Board of Directors, in accordance with the powers granted by the Shareholders’ Meeting, agreed to pay adividend of Ch$2.8 per share, corresponding to a interim dividend of Ch$1.7 and an additional dividend of Ch$1.1 charged to retainedearnings.C a p i t a l i n c r e a s eThe Shareholders’ Meeting of Grupo Security S.A., held on August 2, 2004, decided to declare that part of the capital increase agreed to in theGeneral Shareholders’ Meeting of December 19, 2003 that has not been subscribed to or paid in (issue registered with the Superintendencyof Securities and Insurance under No. 717 on May 20, 2004) null and void. The total increase was 300,000,000 shares for ThCh$30,000,000;additionally, it agreed to increase the capital by ThCh$45,000,000 by issuing 450,000,000 ordinary, registered, no par value, cash shares.