The proposed transaction is a direct equity investment in Euroins Insurance Group AD ("EIG") via participation in a share capital increase.
The investment will enable EIG to strengthen its balance sheet, support future growth and scale up operations in various EBRD countries of operation.
ETI score: 74
Competitive: Support EIG via a capital injection and agreed value creation initiatives such as process digitization and product diversification.
Resilient: Strengthen the resilience of a key regional CEE insurance player by supporting the company's Solvency II ratio, profitability and reinsurance program that is crucial to support future business growth.
EUROINS INSURANCE GROUP AD
EIG, established in Bulgaria, acts as a holding company of the insurance division of EuroHold Bulgaria AD, providing non-life insurance products. EIG is one of the largest independent insurance groups in the CEE/SEE region - ranked second in Bulgaria with circa 12 per cent market share, third in Romania with circa 14 per cent market share, with a broad presence in other countries where the EBRD invests such as Poland, Greece, Ukraine, North Macedonia and Georgia. As of the end of 2020, the company reported premiums of EUR 467m and EUR 206.5m of equity.
EBRD Finance Summary
Direct equity investment of up to EUR 30m.
Total Project Cost
Direct equity investment of up to EUR 30m.
Stabilising the insurance sector, given the recent capital and reserving shortfall faced by the industry, which in turn provide comfort to customers and suppliers.
Environmental and Social Summary
Categorised FI (ESP 2019). EIG is a new client and will be required to comply with EBRD's Performance Requirements (PRs) 2, 4 and 9; adopt and implement the EBRD's E&S Risk Management Procedures for Insurance; and submit Annual Environmental and Social Reports to the Bank. The company has completed the E&S Due Diligence Questionnaire and overall, has appropriate procedures in place to manage the proposed transaction in line with the relevant provisions of PR9.
Technical Cooperation and Grant Financing
Company Contact Information
PSD last updated
10 Sep 2021
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