Slovenia's Sava Re sees Zavarovalnica Maribor deal lifting annual premiums to 500 mln euro

The Sava Re group wrote gross premiums of 258.4 million euro in 2011, down 0.3% from 2010.

The transaction would also lift Sava Re to the ranking of the second largest insurance group in the region, the corporate presentation filed with the Ljubljana bourse showed.

Earlier in the day, Slovenia's Nova Kreditna Banka Maribor (NKBM) said it had signed a deal for the sale of its 50.9963% stake in Zavarovalnica Maribor to Sava Re, already a 48.68% shareholder in the insurance company, and state-dominated fund Slovenska Odskodninska Druzba (SOD).

Sava Re is acquiring an 11.79% stake in Zavarovalnica Maribor for 15 million euro, raising its shareholding to 60.47%. SOD will pay 50 million euro and take over a 39.21% shareholding in the Maribor-based insurer.

Subject to the decision of its shareholders’ meeting on January 11, Sava Re plans to raise 55 million euro of fresh capital by the end of April 2013 with proceeds from the share sale to be used to acquire SOD's shareholding in Zavarovalnica Maribor.

($=0.7699 euro)