Euroins: a new capital increase of over 120 million lei, the third in recent months

Bucharest, August 5, 2021– The shareholders of Euroins Romania are committed to continue investing in the insurance market in Romania, while the company announces a new round of capital increase worth over 120 million lei, after two other recent successive capital increases worth over 126 million lei.

The capital increase will be voted on in the next Extraordinary General Meeting of Euroins Romania Shareholders that will take place on September 15, 2021. With this increase of 120 million lei, Euroins Romania Asigurare Reasigurare SA will achieve a total capital increase of over 246 million lei in the last months. This increase is part of Euroins Insurance Group (EIG) AD’s continuous effort to strengthen its position and support growth in the Romanian market.

With these three successive capital increases, Euroins Romania will significantly strengthen its position in accordance with the strategy of reducing exposure to the RCA segment and diversifying the portfolio.

“This round of capital increase comes in the context where our company is in a transformation strategy. It is normal to increase the capital to comply with the new legal requirements introduced in 2021, but also to be able to follow our long-term strategy. We are dedicated to increasing the quality and diversification of the insurance portfolio: we also want to develop on innovative non-RCA products such as health, travel, accident and liability policies for which we already have a significant growth between 80%-180%. Our main objective is to strengthen the company’s market position and improve financial results.

Euroins Insurance Group (EIG) AD is one of the largest independent insurance groups operating in the EEC / EEA / FSU region. The company focuses on offering a wide range of general, health and life insurance products. The group is headquartered in Bulgaria and operates in 11 European countries and has insurance subsidiaries in Bulgaria, Romania, North Macedonia, Ukraine, Belarus and Georgia. EIG also operates in Greece and Poland and has niche insurance operations in Spain and Italy. Currently, the insurance group has more than 4 million customers and more than 3,000 employees. EIG is a subsidiary of Eurohold Bulgaria, a leading independent group operating in the CEE / SEE / FSU region, listed on the Sofia and Warsaw stock exchanges. Eurohold Bulgaria is active in insurance, leasing, car sales, asset management and investment operations.

Recently, Eurohold completed the acquisition of seven subsidiaries belonging to the Czech energy group CEZ in Bulgaria for EUR 335 million. Following the transaction, Eurohold, through its wholly-owned subsidiary Eastern European Electric BV (EEEC), acquired Bulgaria’s largest electricity distributor, supplier and trader.

After the acquisition and integration of CEZ Group’s assets, Eurohold will focus on two main segments – insurance and energy, aiming to double the number of clients it serves to over 7 million and increase the number of employees to over 6,000 people in 11 countries of Central, Eastern and South-Eastern Europe (CESEE) and the former Soviet Union (URSS).

In the long term, Eurohold aims to develop EEEC into one of the leading utility service providers in the region and will look for opportunities to expand its operations in neighboring countries. The newly expanded holding company’s total assets and revenues are estimated to exceed EUR 1.5 billion, while the combined operating profit (EBITDA) is expected to reach approximately EUR 120 million per year. According to its strategy, Eurohold expects to generate revenue and combined operating profit (EBITDA) of almost EUR 2 billion and EUR 200 million respectively per year by 2025.eig.bgeurohold.bg