EBRD supports innovative digital-driven insurance company in Greece

22 June 2021 — Andrei Victor
The European Bank for Reconstruction and Development (EBRD) is providing a mandatory convertible debt facility of EUR 10 million to Hellas Direct Insurance Limited, a fast growing, tech-driven insurance company, to support its growth and provide the company with solvency capital. The debt facility is part of a larger financing round of EUR 32 million.

Existing shareholders of Hellas Direct, Portag3, a Canadian venture capital investor specialising in fintech opportunities, and the International Finance Corporation (IFC), a member of the World Bank Group, are also investing in this fundraising round alongside the EBRD.

Hellas Direct is a digitally enabled insurer established in 2011. It specialises in private motor vehicle insurance and residential property insurance in Greece and Cyprus.

The funds will support Hellas Direct's growth, enabling the company to scale up its operations, increase its market share and continue offering innovative insurance products and digitalising the motor and home insurance value chain in Greece, where the insurance penetration ratio is one of the lowest in Europe.

It will also provide the company with the necessary solvency to fund insurance premia it expects to underwrite.

The EBRD's participation comes in the form of a mandatory convertible debt instrument, which is expected to qualify as unrestricted Tier 1 capital under the European Union's Solvency II Directive, which is a novel financing instrument tailored for this investment.

The EBRD started operating in Greece on a temporary basis in 2015 to support the country's economic recovery. To date, the Bank has invested more than EUR 4.6 billion in over 75 projects in the corporate, financial, energy and infrastructure sectors of the Greek economy.

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