SOFIA (Bulgaria), February 20 (SeeNews) – Bulgarian insurer Euroins [BUL:5IC] has signed a deal with Germany-based Talanx International to acquire its operations in Bulgaria and Ukraine, Euroins's parent said on Friday.
In a separate statement also issued on Friday the German group said it is selling its two subsidiaries HDI Zastrahovane in Bulgaria and HDI Strakhuvannya in Ukraine "at a price in the middle single-digit million euro range".
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The deal for the two companies is subject to regulatory approvals and is expected to close in the second quarter of 2015, Eurohold Bulgaria [BUL:4EH] said in a bourse filing.
It is part of Eurohold's expansion plans and is aimed at strengthening the group's position on the insurance market in Central and Eastern Europe, it added.
For its part, the German company said the sale of the two companies enables it to streamline its portfolio in Eastern Europe in the Retail International Division.
Following the deal, Euroins will be active in five countries and will be generating gross written premiums in excess of 200 million euro ($227.1 million), Eurohold Bulgaria said.
HDI Bulgaria's managing director, Peter Avramov, will step in as chief executive officer of Euroins Bulgaria, Eurohold Bulgaria also said. “This nomination will ensure a smooth transition process of the merger of both companies,” it added.
In 2013, the gross premium income of HDI Zastrahovane amounted to 13 million euro, while that of its Ukrainian peer was 16 million euro, Eurohold Bulgaria said. The cumulative earnings before interest and taxes of the two companies was around 1 million euros in 2013.
At end-2013, Euroins took over the operations of Australian insurance company QBE in Bulgaria and Romania and finalised the acquisition of Interamerican Bulgaria. In 2014 the company started operations in Greece.
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