RESO Insurance Equity Investment

Location:

Russia

Project number:

36999

Business sector:

Insurance, Pension, Mutual Funds

Notice type:

Private

Environmental category:

FI

Approval date:

17 Apr 2007

Status:

Complete

PSD disclosed:

17 May 2007

Project Description

The European Bank for Reconstruction and Development is acquiring a stake of 10% in RESO Garantia (the “Company”), a leading Russian insurance company.

The main objectives of the project are to i) complete the restructuring of the Company’s operations and its capital base and ii) for the Bank to support the ongoing development of the Company and the Russian insurance market.

 

Transition Impact

The proposed transaction will provide further support to increasing non-life insurance penetration rates (currently non-life premiums are approximately 1.1% of GDP versus approximately an average of 2.1 % in CEE and 3.1% in Western Europe).

The EBRD’s investment will also help the Company in its aims of

i) leading developments in increasing market transparency and best practice; and

ii) preparing for a potential future market offering.

The EBRD will nominate its representative to the Board of the Company.

 

The Client

RESO Garantia is the third largest insurance group in Russia (measured by gross premiums in 2006). RESO provides a wide range of insurance products to corporate and retail clients, but focuses on retail business. The Company is a leading provider of motor, property, accident and health and liability insurance.

EBRD Finance

An equity investment of the rouble equivalent of at least USD 150 million (EUR 110 million). The final size of the EBRD investment will be subject to further adjustments, depending on the price achieved by RESO Garantia and its shareholders in their possible future public stock market offering.

Project Cost

At least USD 150 million (EUR 110 million).

Environmental Impact

The Company will be required to adopt and implement the EBRD’s Environmental Guidelines for the Insurance Sector. This will enable the Company to manage any potential environmental risks that may arise in relation to both the insurance and investment portfolio. The Guidelines will require the Company, inter alia, to comply with the EBRD's Environmental Exclusion and Referral List for FIs and to submit annual environmental reports to the Bank.

Technical Cooperation

None.

Company Contact

Irina Rybalchenko, Investor Relations Officer
RESO Garantia
Gasheka street 12, building 1
Moscow 125047
Russia

Tel: + 7 (495) 232-40-41
E-mail: investors@reso.ru

 

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

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

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