EBRD invests €30mn in Bulgarian insurer with major exposure to Romania

By bne IntelliNews September 13, 2021

Bulgarian group Еurohold announced that “it is engaged in advanced discussions with European Bank for Reconstruction and Development (EBRD)” on the sale of a minority stake in its insurance arm Euroins Insurance Group (EIG). Both parties have approved the project, the EBRD confirmed.

EBRD will contribute €30mn through a capital increase and Еurohold will also participate in the capital increase with a further equity capital injection of up to €12mn.

Euroins Insurance Group will use the raised funds predominantly for the development and growth of the largest insurance entity within the group, Euroins Romania Asigurare Reasigurare, and additionally, to strengthen the holding’s market positions in Southeast Europe.

Euroins Romania is the second biggest insurer in Romania, with significant exposure to the mandatory car insurance segment.

The deal remains subject to an agreement on and execution of final transaction documents and satisfaction of contractual conditions to closing.

As for the Romanian subsidiary of EIG, Ziarul Financiar reported an ongoing €24.3mn capital increase from the parent group EIG to be endorsed on September 15, on the top of two similar capital increases worth a combined €25.5mn operated recently.

EIG is also preparing an €8.1mn capital injection to be financed out of a subordinated loan.

All these would result in a €57.8mn capital contribution by EIG to its Romanian subsidiary over the past year.

"In recent months, Euroins Romania has gone through a radical process of change, risk reassessment and improvement of the products and services we offer, practically a repositioning on the insurance market. The EBRD's presence in the Euroins shareholding indicates that we are on the right track, proving that we are a solid company and that we are a stable partner, both for customers, business partners, and authorities,” said Tanja Blatnik, Euroins Romania general manager.

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