FFH Ukraine Holdings

Location:

Ukraine

Project number:

41514

Business sector:

Insurance, Pension, Mutual Funds

Notice type:

Private

Environmental category:

FI

Target board date:

12 Jul 2011

Status:

Signed

PSD disclosed:

15 Nov 2019

Project Description

EBRD invested into PJSC Insurance Company Universalna ("Universalna") in 2011 and became a minority shareholder. Following the changes in the ownership structure, in November 2019, EBRD became 30% shareholder in LLC FFH Ukraine Holdings ("FFH Ukraine"), which owns Universalna, PJSC Insurance Company ARX ("ARX") and ALC Insurance Company ARX Life ("ARX Life") to support the insurance sector development and market competition. The remaining 70% of FFH Ukraine is ultimately controlled by Fairfax Financial Holdings Limited ("Fairfax").

Project Objectives

The operation will support consolidation of ownership in the highly fragmented insurance market of Ukraine, support market competition and growth, enable operating companies to benefit from the ownership of a strategic insurance investor and support development of the non-bank financial sector in Ukraine.

Transition Impact

The main sources of transition impact will stem from Competitive and Resilient qualities, through supporting consolidation of ownership in the fragmented market, market competition, further development of the non-bank financial sector, and promotion of high corporate governance and business conduct standards.

Client Information

FFH Ukraine is the holding company of three sister companies,

  1. ARX, a leading non-life insurer in Ukraine with UAH 1,891 million gross written premium in FY2018;
  2. ARX Life, a leading life insurer in Ukraine with UAH 93 million gross written premium in FY2018,
  3. Universalna, one of Ukraine's Top-10 non-life insurers, with UAH 826 million gross written premium in FY2018.

Three companies have generated UAH 2,811 million (USD 114 million) gross written premium in FY2018 collectively.

FFH Ukraine is ultimately majority controlled (70%) by Fairfax Financial Holdings Limited, a Toronto based financial company engaged in property, casualty, insurance and reinsurance and listed on the Toronto Stock Exchange.

EBRD Finance Summary

Equity investment.

Environmental and Social Summary

Categorised FI (ESP 2014).Universalna, ARX and ARX Life will be required to comply with EBRD's Performance Requirements 2, 4 and 9, implement EBRD's E&S risk management procedure for insurance and submit Annual E&S Reports to the Bank.

Technical Cooperation

None.

Company Contact Information

Universalna - Olga Tsymbalyuk: OTsymbalyuk@universalna.com
ARX/ARX Life - Nonna Ryzha: Nonna.Ryzha@arx.com.ua

 

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