EBRD to acquire minority stake in Euroins Insurance Group by investing EUR 30 million through a capital increase

6 October 2021 — Daniela GHETU

The European Bank for Reconstruction and Development (EBRD) signed an agreement to acquire a minority stake in Euroins Insurance Group (EIG) by investing EUR 30 million through a capital increase, while Еurohold, the insurance group's parent company, is providing a further equity injection of up to EUR 12 million.

The funds will be used for the development and growth of the largest insurance entity within the group, Euroins Romania Asigurare Reasigurare. The financing will also support the group's operations and growth in Georgia, Greece, North Macedonia, Poland and Ukraine.

Mark Davis, EBRD Regional Director for Romania and Bulgaria, added: "We are so pleased to be partnering with Euroins to expand high-quality, advanced and dependable insurance in Romania and across the region. We are also pleased to be engaging in parallel with Romania's Financial Supervisory Authority (ASF) on a direct settlement process for the benefit of consumers and the insurance sector overall in Romania."

The EBRD is working with ASF to develop new regulations for managing motor claims. Its goal is to help create a fairer system for all parties involved, including customers, workshops and insurance companies, while fostering the interest of larger global insurers and attracting capital to the sector.

"We are glad to welcome the EBRD, one of the major international financial institutions, as a shareholder in EIG. The participation of the Bank shall further strengthen the solvency positions of the Group and support its growth on markets where both EIG and the EBRD have been focusing on. The investment comes at an important moment for EIG's largest company - Euroins Romania. It marks a strategic milestone of the capitalization of our Romanian subsidiary in which EIG has invested over RON 300 million in the past 12 months. Thus, Euroins Romania shall look ahead as a well-capitalized, innovative, client-oriented and diversified insurer on the challenging local market.", said Kiril Boshov, Chairman of Еurohold's management board.

"This investment confirms that Euroins Romania is growing on solid pillars, that all the changes made so far make us a reliable partner - especially in the context of recent weeks and the changes taking place in the local insurance market. This capital injection helps us to develop in all important business segments, to adapt to current times, but also to innovate. We have a goal, a repositioning on the insurance market, a new mentality and we will continue to invest resources, time and energy to growth the non-RCA segment of the business. The change we have proposed is not an easy one, but we keep our direction, keeping ourselves open at the same time to what our clients and partners want. All the support we enjoy today is another proof that we are one of the most important voices in the industry and motivates us to become an example of good practice ", stated Tanja Blatnik, General Manager of Euroins Romania.

The EBRD's investment will also help Euroins create value through enhanced corporate governance, digitalization and diversifying products from mandatory motor insurance to those covering health, accidents, fire and property. Recently, the EBRD has co-financed Еurohold's acquisition of CEZ Group's business in Bulgaria.

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