BALTA INSURANCE GROUP (EQUITY)

Location:

Latvia

Project number:

19477

Business sector:

Insurance, Pension, Mutual Funds

Notice type:

Private

Environmental category:

FI

Target board date:

26 Jun 2001

Status:

Completed

PSD disclosed:

29 Jun 2001

Project Description

The EBRD proposes to acquire approximately 24 per cent of the share capital in Balta, Latvia from Codan a leading Danish insurance company and subsidiary of Royal & SunAlliance of the United Kingdom, following Codan’s recent acquisition of approximately 99 per cent of Balta. The Danish IØ Fund will also acquire approximately 17 per cent of Balta from Codan.
The investment will support the development of the Latvian insurance market and will contribute to the strengthening of the local capital markets.
 

Transition Impact

The project will bring in foreign know-how as Codan will introduce a comprehensive range of training programmes for local staff and increased product knowledge. Codan will also bring much-needed credibility through its high professional standards to an industry that has seen little foreign ownership to date. The project will also bring a greater emphasis on commercial insurance and thus to the provision of enhanced insurance products for companies and particularly small and medium-sized enterprises (SMEs).

The Client

Balta insurance group is a Latvian non-life and life insurance provider consisting of three companies: Balta, Latva and Rigas Apdrosinasanas Sabiedriba (RAS). Balta is the largest insurance group in Latvia and one of the largest insurers in the Baltics with a 21 per cent market share of the Latvian non-life insurance market and 29 per cent of the life assurance market.

EBRD Finance

Acquisition of approximately 24 per cent of the share capital of Balta for approximately LVL 5 million (€9.1 million).

Project Cost

Approximately LVL 20 million ( €36.4 million)

Environmental Impact

Balta will conduct its insurance and asset management operations in accordance with the EBRD’s Environmental Guidelines for the Insurance Sector.

Technical Cooperation

None.

Company Contact

 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

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Public Information Policy (PIP)

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Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.