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EIG acquires United Health Insurance

January 11, 2012

Euroins Insurance Group (EIG), a subsidiary of Eurohold Bulgaria, acquired a 100% stake in United Health Insurance (UHI). The purpose of the purchase is to consolidate the market share of EIG and in particular – of the health insurance business of the company, represented by EuroIns Health Assurance. The deal is expected to be finalized by the end of May.

EuroIns Health Assurance was established in 2004. According to latest data by the Bulgarian Financial Supervision Commission (FSC) the market share of the company as at the end of November 2011 was 7.2%. The growth in revenue over the previous years for 2009, 2010 and 2011 was, respectively, 52.8%, 96.5% and 30.8%. The number of people insured under existing contracts by the end of 2011 was 22 723, representing 12.1% of the expected total number of voluntarily insured persons in 2011.

EuroIns Health Assurance works with a wide network of hospitals across the country. The company offers a combination of health insurance packages which provide complex medical care to the customers. Currently EuroIns Health Assurance works with over 450 partners, covering a wide variety of hospitals, diagnostic and consultative centers, medical centers, and specialized hospitals.

United Health Insurance is a voluntary health insurance fund, established in 2003. The company’s market share as at the end of November 2011 was 2.0%.

With the acquisition of the fund, EuroIns Health Assurance will become one of the top 3 largest companies on the Bulgarian market for voluntary health insurance, which has been an integral part of the ambitious development program of the company. Management foresees a revenue stream by the end of 2012 of 4,400 thousand BGN - a 35% growth compared to 2011, and 27 000 insured persons.

Management’s expectations after the completion of the transaction are to optimize and expand the company and to offer better and more comprehensive scope of services.

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