EBRD has acquired an equity stake in the Greek insurance company European Reliance General Insurance Company S.A. ("European Reliance") from Piraeus Bank S.A. representing 15 per cent of European Reliance's total share capital.
With this investment, the EBRD is supporting the future development of European Reliance and facilitating the restructuring efforts of Piraeus Bank S.A.. The Greek insurance market is less advanced compared to other EU markets and the EBRD is therefore planning a long-term engagement with European Reliance.
ETI score: 60
Transition impact stems from the following:
- Competition in the insurance sector
- Setting standards for corporate governance and business conduct
EUROPEAN RELIANCE GENERAL INSURANCE COMPANY SA
European Reliance is a leading composite insurer in Greece and listed on the Athens Stock Exchange. In 2015, European Reliance had gross written premiums which totalled €167 million and was among the top 10 insurance companies in Greece.
EBRD Finance Summary
Total Project Cost
Environmental and Social Summary
Categorised FI. The activities of European Reliance are generally considered low risk from an environmental and social (E&S) perspective. ESD has reviewed a variety of E&S information to assess compliance with PRs 2, 4 and 9. In respect of PR2 and PR4 European Reliance is fully in compliance. For PR9 European Reliance will need to adopt and implement the EBRD's E&S Risk Management Procedures for Insurance Companies.
Technical Cooperation and Grant Financing
Company Contact Information
+30 210 8119655
+30 210 6841325
Kifisias Aven. 274, 152 32, Chalandri Greece
The Project supported restructuring of the Greek banking system and helped to establish a stable shareholder base at European Reliance ("ER" or the "Company"), enabling a long-term growth in challenging market environment.
After EBRD's investment in 2016, ER's shareholder's composition remained largely unchanged. The Company demonstrated significant growth despite the economic difficulties in Greece: Gross Written Premiums ("GWP") increased from EUR 167 million as of YE2015 to EUR 212 million as of YE2019. Consequently, the ER's market share by GWP increased from 4.7% as of YE2015 to 5.2% as of YE2019. The Company has been continuously among the most efficient firms in Greece with a total motor loss ratio of around 60%. Additionally, the Solvency Capital Requirement Ratio, without the application of traditional measures and loss-absorbing capacity, is considered one of the highest in the sector (165.9%). The Company's Profits before taxes increased from EUR 16.1 million as of YE2015 to EUR 22.5 million as of YE2019.
The project ensured adherence to strict environmental, energy-efficiency and social standards. The Company fully implemented the Environmental and Social Action Plan on time and is the only insurance company in Greece which publishes ESG Reports, in the line with GRI Standards, ISO 26000 and the 17 SDGs of the U.N.
In terms of Transition impact, the Project contributed to overall competition by supporting development, expansion and corporate governance quality of one of the key market players in the Greek insurance market.
PSD last updated
18 Feb 2021
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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