Intouch Insurance

Location:

Russia

Project number:

36848

Business sector:

Insurance, Pension, Mutual Funds

Notice type:

Private

Environmental category:

FI

Approval date:

03 Oct 2006

Status:

Completed

PSD disclosed:

27 Jul 2006

Project Description

Through an equity investment it is proposed that the EBRD participate in a greenfield direct insurance company with a focus on non-life and, primarily, motor insurance (third party liability and Casco insurance).

The company will sell products via telephone call centres and utilise the experience of Direct Insurance Financial Investments Ltd, Israel in starting an operating such businesses.

Transition Impact

The project will support further development and competition in the Russian insurance market and also facilitate innovation through a transfer of specific knowledge and new techniques to the market.

The Client

Client: operations will be conducted via an existing licensed Russian insurance company which will be purchased. Negotiations with potential target companies are ongoing.

Sponsor : Direct Insurance Financial Investments Ltd (“DIFI”), a company listed on Tel-Aviv Stock Exchange, which has a controlling stakes in the leading direct insurance providers in Israel (Direct –IDI insurance ) and Poland (Link 4).

EBRD Finance

Approximately EUR 35 million equity financing (including initial capital and anticipated capital increases).

Project Cost

Approximately EUR 120 million equity financing (including initial capital and anticipated capital increases).

Environmental Impact

The environmental risks associated with the Company’s operations are expected to be low. Policies will generally exclude environmental liability, but coverage of environment-related damages is possible in conjunction with appropriate reinsurance. In order to mitigate environmental impact the Company will conduct its insurance operations (both underwriting and investment activities) in accordance with the EBRD’s Guidelines for the Insurance Sector.

Technical Cooperation

None.

Company Contact

Mr Igal Mor, Chief Financial Officer
Direct Insurance Financial Investments Limited
Adgar Tower, 35 Efal St. Petach-Tikva
49511 Israel

Tel. +972 (3) 625 1424
Fax. +972 (3) 919 1330

 

Business opportunities

For business opportunities or procurement, contact the client company.

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