The insurance business of the group that is concentrated in EUROINS Insurance Group (EIG) and continued to expand in Southeastern Europe, contributed the most to the holding's stable performance. The revenues from the insurance business increased slightly by 1% y-o-y to BGN 375.4 million. The GWP of EIG grew by 6.4% on the year to BGN 249 million. The proceeds generated by the holding's financial and investment activity were up by 26% y-o-y, to BGN 2.75 million. The other two business segments - leasing and car sales, also reported stable performance, despite the fact that both sectors were among the most affected by the crisis. The revenues of the group's leasing business even climbed by 11% y-o-y to around BGN 6.3 million.
EUROHOLD improved its operating profitability as EBITDA increased by 2% on the year to BGN 12.2 million. The net financial result amounted to BGN 1.2 million in the first quarter of 2021 compared to BGN 3.3 million in the same period in the previous year. The decrease in this indicator was due to higher financial costs. As of March 2021, EUROHOLD's assets reached BGN 1.68 billion which is 3.2% more than in December 2020.
"Our results in the first quarter of 2021 show strong resilience and we see a return to the pre-crisis levels. The Group reports solid performance if we compare the current period with the strong Q1 2020 when our results were growing, and the crisis has still not started. The overall performance in 2020 and since the beginning of 2021 has shown our resilience and ability to cope with an extraordinary situation. We are grateful to our employees, customers and partners for their efforts, understanding, support and trust in us. Despite the great challenges, we are confident that we will meet the expectations and achieve our goals for this year", said Kiril Boshov, chairman of EUROHOLD 's management board.
EUR 100 million capital raise for further development
In the meantime, Eurohold has started a procedure for a capital increase through a new share issue that will allow the company to raise up to EUR 100 million in its own funds. The public offering will be conducted on the Bulgarian Stock Exchange (BSE). Eurohold will offer for subscription 79 million new ordinary shares with a par value of BGN 1 and an issue price of BGN 2.50 each. If the public offering is successful, Eurohold would raise up to EUR 100 million and the proceeds will be used to finance the acquisition of CEZ Group's subsidiaries in Bulgaria and to invest in the development of the group's two main businesses - energy and insurance.
The Bulgarian investment intermediary Euro-Finance AD will be the lead manager of the public offering. EUROHOLD has appointed Renaissance Capital solely in capacity of a financial adviser in relation with the offering.
EUROHOLD's Interim Consolidated Report is available here.
Currency conversion: 1 EUR = 1.9558 BGN, fixed