EIG acquired a minority stake in the Serbian general insurance company Takovo Osiguranje

September 01, 2008

On August 29, 2008 Euroins Insurance Group (EIG) acquired 41 948 shares of Takovo Osiguranje which represents approximately 10% stake in the listed Serbian insurance company. The value of the deal totals EUR 3.65 MM and was executed on the Belgrade Stock Exchange.
There are 18 insurance companies active on the Serbian market, 9 of which sell only non-life insurance products and 6 offer both life and non-life products. For 2007, the total market insurance premiums reached EUR 565 MM, 89% (EUR 503 MM) of which were generated by general insurance. 
Takovo is the sixth largest (based on market share) Serbian non-life insurance company. The company is a dominant player with 9.3% market share in the mandatory Motor Third Party Liability insurance with over 250,000 policies underwritten in 2007. For 2008, the company expects to increase its total collected insurance premiums by 50% y-o-y, reaching EUR 26 MM in insurance premiums.  Тakovo is a listed general insurance company,. traded on the Belgrade Stock Exchange with current market capitalization of EUR 38 MM.
The acquisition of a minority stake in Takovo Osiguranje is the first step in the expansion of EuroHold into neighboring Serbia. EIG and Takovo will partner in offering new insurance products, integration of proprietary IT systems, as well as adopt IFRS accounting and reporting policies. Having strong alignment of interests with Takovo’s management and current shareholders, EIG will have a representative in the Board of Directors of the insurance company to better synchronize both companies’ joint development efforts.
As a next step of its expansion in Serbia, EuroHold plans to establish a leasing company in the country which will offer joint leasing-insurance products and packages to Takovo customer. EuroHold owns the largest non-bank affiliated leasing companies in Bulgaria along with fast developing leasing businesses in Romania and Macedonia.
EFG Telesis Finance, Athens and Prospera Securities AD, Belgrade advised Euroins Insurance Group, whilst Argonauts Consultants Limited, Nicosia, Cyprus advised Takovo Insurance shareholders, in negotiating and executing this transaction.