The European Bank for Reconstruction and Development becomes a shareholder of Euroins

Bucharest, September 10–The European Bank for Reconstruction and Development (EBRD) and Eurohold, the owner of Euroins Insurance Group, have signed an agreement whereby the EBRD proposes to take a minority stake in Euroins’ operations.

The agreement was approved at all corporate levels of the two entities, and the final contractual documents will be signed in the coming days. The investment of the European Bank for Reconstruction and Development in Euroins will be for an amount of up to 30 million euros and will be realized through a capital increase of the insurance group. Eurohold, the owner of Euroins, will also participate in the capital increase procedure with an additional equity injection of up to 12 million euros.

Euroins Insurance Group will use the funds raised mainly for the development and growth of the largest insurance entity within the group – Euroins România Asigurare Reasigurare SAand, in addition, to strengthen the holding’s market positions in South-Eastern Europe.

“In recent months, Euroins Romania has gone through a radical process of change, risk reassessment and improvement of the products and services we offer, practically a repositioning on the insurance market. The presence of the EBRD in the Euroins shareholding indicates that we are on the right track, proving that we are a solid company and that we are a stable partner, both for customers, business partners and authorities. Only a few months have passed since I took over the mandate of general director of Euroins Romania, and the changes I proposed do not stop there. We will launch new products, we have a different approach to customers, we continue to invest and grow in the non-RCA market, because today Euroins is a dynamic, competitive company that has so much to offer. Change is not easy, but the presence of a partner like the European Bank for Reconstruction and Development is a positive signal for the entire Romanian industry”, said Tanja Blatnik, general director of Euroins Romania.

In addition to the EBRD investment, Euroins Romania shareholders have already announced a capital increase of 24.3 million euros (120 million lei) to be voted on at the Extraordinary General Meeting on September 15, 2021. This capital increase follows two other successive capital increases of over 25.5 million euros (126 million lei) and together with an additional capital injection of 8.1 million euros (40 million lei), to be granted to Euroins Romania by the parent company through a subordinated debt. This would result in a total contribution of EUR 57.8 million (EUR 286 million) by the main shareholder to the capital of Euroins Romania in less than a year.

The European Bank for Reconstruction and Development (EBRD) also co-financed Eurohold’s acquisition of CEZ Group’s business in Bulgaria. On July 28, 2021, Eurohold – the largest Bulgarian holding company and an independent financial and insurance group in Southeast Europe, officially completed the acquisition of the subsidiaries of the Czech energy group CEZ in Bulgaria for EUR 335 million.

As a result of the transaction, Eurohold took over 67% of the participation in the largest electricity distributor in Bulgaria – CEZ Distribution Bulgaria (40% market share) and the largest electricity supplier – CEZ Electro Bulgaria, as well as 100 % of the capital of the largest authorized electricity trader – CEZ Trade Bulgaria. The group also acquired the IT services company CEZ ICT Bulgaria, the solar park Free Energy Project Oreshetz and the biomass power plant Bara Group.

By acquiring and integrating the assets of the CEZ group, Eurohold doubles the number of clients it serves – to more than 7 million – and will employ more than 6,000 people in 11 countries in Central, Eastern and South-Eastern Europe (CESEE) and former Soviet Union (FSU) ). CEZ Group’s Bulgarian subsidiaries have more than 3,000 employees and provide services to nearly 3 million customers.

Eurohold

Eurohold Bulgaria is a leading independent business group in the CEE / EEA / CIS region and the largest public holding company in Bulgaria – in terms of revenue. It operates in insurance, leasing, car sales, asset management and investment services. Eurohold listed on BVB and WSE. It owns Euroins Insurance Group (EIG), one of the largest independent insurance groups in the CEE / EEA / CIS region, operating in 11 countries and having subsidiaries in Bulgaria, Romania, North Macedonia, Ukraine, Georgia, Russia and Belarus.eurohold.bgeig.bg