Hellas Direct Insurance

Location:

Regional

Project number:

52394

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

16 Dec 2020

Status:

Disbursing

PSD disclosed:

16 Apr 2021

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

A junior subordinated mandatory convertible debt investment of up to €10 million to HD Insurance Limited ("Hellas Direct" or the "Company"), a general insurer incorporated in Cyprus and operating in Greece and Cyprus. 

Project Objectives

This transaction supports a fast growing, tech-driven insurance company operating in Greece, where the insurance penetration ratio is one of the lowest in Europe, to scale up the Company's operations and allow it to continue offering innovative insurance products and digitalising the insurance value chain. The Bank's investment will provide the Company with adequate solvency headroom to reach the necessary scale in line with its business plan. Therefore, the funds will be used as regulatory capital, as well as for working capital and general corporate purposes. 

Transition Impact

ETI score: 64

The expected transition impact of this transaction consists of:

- Competitive Quality: the new funding will support the growth of an innovative digitally enabled insurance market player that offers pioneering products in motor and home insurance. The Project will support the Company in scaling up its operations and increasing its market share.

- Resilient Quality: the Project will provide the necessary solvency capital for the Company to fund the growing GWP it expects to underwrite and that it requires to scale up its operations, while maintaining strong operational performance. 

Client Information

HD INSURANCE LTD

HD Insurance Limited is a next-generation all-digital insurance company established in 2011. It operates in the non-life insurance business segment, specialising in private motor vehicle insurance and residential property insurance in Greece and Cyprus. 

EBRD Finance Summary

EUR 10,000,000.00

Junior subordinated mandatory convertible debt investment of up to €10 million

Total Project Cost

EUR 16,300,000.00

Additionality

Innovative financing structures and/or instruments: the EBRD is investing in a mandatory convertible unrestricted Tier 1 capital under Solvency II, which is a novel financing instrument tailored for this investment. The investment will give Hellas Direct adequate solvency capital headroom to achieve its business plan and then target a larger capital raise in two to three years.

- Knowledge, innovation, and capacity building: the EBRD's participation supports expertise and knowledge building through an innovative financing instrument that is novel to the market as well as the regulator.

Environmental and Social Summary

Categorised FI (ESP 2019). Hellas Direct has provided evidence that it is in compliance with EBRD's Performance Requirements (PRs) 2, 4 and 9 during the environmental and social due diligence and will be required to continue to comply with these PRs. Implementation of the EBRD's E&S Risk Management Procedures for Insurance is not necessary as the client only extends personal (car and home) insurance. The client has demonstrated that it has in place adequate legal covenants to ensure compliance of its clients with national applicable environmental, social, health and safety laws as well as a functioning external grievance mechanism. Hellas Direct will submit Annual Environmental and Social Reports to the Bank. There is no GET share associated with this transaction.

Technical Cooperation and Grant Financing

None

Company Contact Information

Natalie Curry
+30 212 222 9999
https://www.hellasdirect.gr/

PSD last updated

16 Apr 2021

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

 

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