Kiril Boshov, Euroins Insurance Group CEO and Eurohold Chairman of Management Board, in front of Media, Greece

September 20, 2021


Author:George Dimitriou

September 20, 2021


We plan to triple our market share in Greece within the next 5 years


The forthcoming agreement with the EBRD was recently announced. How will it affect the EIG and its activities in SE Europe, including Greece?

The EBRD will invest up to € 30 million in the Euroins Insurance Group (EIG) through a capital increase and will acquire a minority stake in the group. In addition, Eurohold, a major shareholder in EIG, will make an additional capital injection of up to € 12 million. The EBRD has already co-financed the acquisition of CEZ Group companies in Bulgaria by Eurohold and we are now further developing our cooperation, focusing on the insurance industry. It will make a significant contribution to the positive development of the EIG. The EBRD is a reputable international organization and an important investor for the economic development of our region.

We will use the funds that will be raised mainly for the development of the largest subsidiary within our insurance group - Euroins Romania. The cooperation with the EBRD, however, will significantly strengthen our position in the market of Southeastern Europe, including Greece. The investment will allow us to support the activities of all our key units in the region and maintain our organic growth and regional expansion. In this context, we plan to triple our market share in Greece within the next 5 years. We still have a small share of the local insurance market, but we seek to increase it significantly. This will strengthen the competition in the insurance sector in Greece and will benefit all customers in the country with better prices and terms.

The recent agreement with the CEZ Group was also impressive. Will this agreement create additional opportunities and benefits?

We have acquired the largest distributor, supplier and trader of electricity in Bulgaria in one of the largest deals in the region in the last two years. We now serve over 7 million customers and employ around 6,000 people in 14 European countries, mainly in Central, Eastern and Southeastern Europe (CESEE) and the former Soviet Union (FSU). This year, our total assets and revenues will exceed 1.5 billion euros, while our EBITDA is projected to reach approximately 120 million euros. In view of the above, Eurohold is expected to generate revenue and EBITDA of almost € 2 billion and € 200 million per year by 2025, respectively. This will make us a leader in CESEE.

The acquisition of CEZ Group activities in Bulgaria will create many potential synergies, optimizations and cross-selling opportunities that will positively affect both our customers and investors. Above all, the combination of our activities in the field of insurance and energy, will significantly improve the model and profile of the company, because it will ensure higher stability and predictability regarding its profits and cash flows. The recent agreement will provide long-term growth prospects for our company, even in times of lower economic growth, making our business model much more resilient to financial crises and recessions.

Do you plan to increase your market share in countries where you are already active or considering new markets?

In terms of insurance activities and at group level, we will seek to maintain our current positions, diversifying our product portfolio into sectors other than motor insurance and launching new direct and online distribution channels. Our international expansion will be more targeted from now on. In the coming years we will rely mainly on organic development, including the Freedom of Service option, and seek to improve profitability and productivity in the areas where we already operate.

Regarding our business activities in the energy sector, we will look for opportunities for further development at the regional level and expansion of electricity supply companies in neighboring countries. Greece is on our radar in this regard as well.

I ask you because, among other things, your strategy for Greece and, in principle, the Group's plans for Euroins Greece are interesting.

Euroins will grow in Greece, diversifying its portfolio into areas other than motor insurance such as property, liability, health and life insurance. Our activities in Greece have greatly contributed to the development of Euroins. We are one of the few regional groups operating in Greece through a local branch. Since the opening of our branch, our team in the country has grown to almost 100 employees.

We are loyal partners, employers and taxpayers. In addition, our local branch has supported a wide range of social projects and goals initiated by local communities in various areas, including donations to fight fires, hospitals, sponsorships to local sports clubs, etc.

The original text of the interview here