EBRD supports the development of the insurance market in Romania

The excellent results of EIG in 2021, after the EBRD took over the minority package to support the Euroins Romania subsidiary, show the value of stabilizing the sector for Romanian consumers

The European Bank for Reconstruction and Development (EBRD) has expressed optimism about the development of the local and regional insurance market, following the record results achieved in 2021 by the Euroins Insurance Group (EIG) in Bulgaria, guided by the strong performance of the its larger entities, Euroins Romania Insurance Reinsurance.

EIG is one of the largest independent non-life insurance groups in Central, Eastern and South-Eastern Europe. EBRD acquired a minority stake in the group last year, to support the development and growth of its unit in Romania, committing to invest 30 million euros through a capital increase.Eurohold, the parent companycomplicatedof the insurance groupcomplicatedri, he engaged scomplicatedoffer a new onecomplicatedinjectionÞi.e. capital of 12 million euros.

“The purpose of the EBRD’s October 2021 investment was to support the stabilization of the insurance sector, while providing certainty to customers, regulators and providers,”said Mark Davis, EBRD Regional Director for Romania and Bulgaria.

The latest figures confirm the value of the investment.

The total volume of EIG premiums increased by up to 50% to 700 million euros, the net profit was 40.4 million euros, and the total consolidated assets increased by 29% to 1.06 billion euros by the end of the month December. The double-digit growth rates recorded by EIG units in the main markets were led by the subsidiaries in Romania and Bulgaria, which recorded increases of 67% and 15% in the gross premium subscribed.

“The EBRD is very pleased with the progress made by the EIG. We continue to work with the Financial Supervisory Authority (ASF) and other key players in the market to develop a fair system for all parties involved, including customers, garages and insurance companies, while encouraging the interest of large global insurers and attracting of capital in the sector”, said Mark Davis, EBRD Regional Director for Romania and Bulgaria.

“Through our presence, we hope to attract larger and higher-value insurance projects for the company, which will evolve in parallel with improved results and a financial position. We remain fully committed to helping EIG become the largest independent insurance group in the EEA by the end of 2025, with a broad portfolio of non-life and life insurance products and over 10 million customers.”, Mark Davis added.

EBRD participation continues to strengthen EIG’s solvency position and support its growth in markets where both EIG and EBRD have a strong presence.

The bank supports efforts to digitize and diversify products, beyond mandatory car insurance, covering also health, accident, fire and property insurance.

The presence of the EBRD will also help EIG increase value through improved corporate governance – including the appointment (subject to regulatory approvals) of the EBRD’s director nominee, Prasun Singhal, who brings over 15 years of experience in the insurance sector.

The EBRD is a major investor in both Romania and Bulgaria. To date, it has invested almost 10 billion euros in the Romanian economy through 488 projects and over 4.3 billion euros in 277 projects in Bulgaria.