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Grupo Security Sets Share Price At CH$220 For Capital Increase

In doing so, the group takes an additional step in the process of capitalization of Banco Security and Inversiones Seguros Security, which is meant to strengthen its growth and capital base.

During the Board meeting held yesterday, the decision was made to set the share price at CH$220 for the capital increase of approximately 437 million shares. The capital increase had previously been approved at the Extraordinary Shareholders Meeting held on April 27.

The purpose of this capital increase is to capitalize the subsidiaries Banco Security and Inversiones Seguros Security, which includes the companies Vida Security and Protecta, the latter in Peru. Grupo Security's CEO, Renato Peñafiel, said that "This will allow us to sustain commercial growth above the industry rates and strengthen the capital base of our main assets, Bank and Life Insurance. In regard to the former, this increase puts us in a solid position in case of potential future capital requirements."

The CEO noted that, "The rate of growth of Grupo Security earnings has been 10.8% over the past 10 years and 12.2% over the past 5. This means that earnings have nearly tripled over the past 10 years. In addition, profit per share has grown at 6.5% over the past 10 years and 9.5% over the past 5 years despite the periodic capital increases. The dividend yield reached an average of 5% over the past 10 years and 5.1% in the past 5 years, which is one of the highest and most stable in the market."

The capital increase placement process will be executed by Banchile Corredores de Bolsa S.A.

Grupo Security is structured around four main business areas, each of which groups together subsidiaries and divisions that share business objectives. These areas are finance, insurance, investments and asset management, and complementary services.