SOFIA (Bulgaria), November 17 (SeeNews) – Bulgaria’s Euroins Insurance Group (EIG) said on Friday it will acquire a 49% stake in Russian insurer RSO Euroins.
EIG will acquire the stake for 3.6 million euro ($4.2 million) through increasing the capital of RSO Euroins, the Bulgarian insurance group said in a statement.
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The deal is pending regulatory approval.
The acquisition of the Russian insurer is in line with EIG's strategy to expand the scope of its portfolio in Eastern Europe and strengthen its position as a leading insurance group in the region, according to the statement.
The purchase of RSO Euroins is also in line with EIG's strategy to expand in the CIS region where the markets hold a huge growth potential considering the low penetration of insurance products, as well as the consolidation opportunities going forward, the statement reads.
RSO Euroins, established in 2003, specialises in the general insurance segment in Russia. The company’s gross written premiums (GWP) rose by an annual 40% to 21 million euro in 2016.
RSO Euroins is majority owned by local company APOS, which currently holds an 84.36% stake. Another company, TsOK, owns 9.98% of RSO Euroins, and a 5.66% stake is in the hands of the company's director general, Olga Makova.
Euroins Insurance Group (EIG) is part of financial and insurance group Eurohold Bulgaria [BUL:4EH]. The Sofia-based group operates in eight European countries and owns insurance subsidiaries in four of them – Bulgaria, Romania, Macedonia and Ukraine.