Insurance, Pension, Mutual Funds
18 Sep 2001
21 Aug 2001
The EBRD is considering an increase in its stake in Lietuvos Draudimas, the leading insurance company in Lithuania, by purchasing additional shares recently acquired by Codan, a Danish insurance company. The investment will continue to support the development of the Lithuanian insurance market and to contribute to the strengthening of the local capital markets.
The project will continue to introduce foreign know-how as Codan is continuing with a comprehensive range of training programmes for local staff and continuing to increase the range of insurance products available in Lithuania. Particular attention is currently being paid to preparation for the introduction of mandatory third party motor liability insurance in 2002 and providing flexible life assurance products.
Lietuvos Draudimas is the largest insurance company in the Baltic states with a 48 per cent share of the Lithuanian non-life insurance market and 85 per cent of the life assurance market in 2000. Technical and management support is provided by Codan. The EBRD owns 14 per cent of the share capital of Lietuvos Draudimas, under its co-investment agreement with the Danish IØ Fund, which also owns 14 per cent. Codan, a leading Danish insurance company and subsidiary of Royal & SunAlliance of the United Kingdom, has been Lietuvos Draudimas’ majority investor since the company’s privatisation in 1999. Codan has recently increased its stake from approximately 52 per cent to approximately 67 per cent and the EBRD is now considering increasing its stake by acquiring from Codan part of the shares that Codan recently acquired.
The EBRD’s original investment was approximately LTL 30 million (€8.5 million). The EBRD is considering increasing its investment to a shareholding of up to 22 per cent.
Approximately LTL 200 million (€55 million) to date.
Lietuvos Draudimas conducts its insurance and asset management operations in accordance with the EBRD’s Environmental Guidelines for the Insurance Sector.
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