The capital of the new company will be formed through a contribution of the shares, which the holding has in EuroIns Bulgaria, EuroIns Romania (Asitrans Asigurari) and the Health Insurance Company St. Nikola Chudotvoretz.
The objectives of the formation of the new insurance holding, which wil be entirely under the control of Eurohold Bulgaria, are:
1) EuroIns Insurance Group LLC will possess all features of the strategic investor in the insurance activity and will accelerate the process for reaching the targets of Eurohold Bulgaria for 4 to 5% market share in the general insurance in the countries from the Balkan region in short-term period. The Euroins IG goals are confirmation of the company as one of the most significant regional insurance groups.
2) EuroIns Insurance Group LLC will possess only the subsidiary insurance companies, will respond at a higher level to the increased requirements of the regulative authorities (national insurance authorities) to the majority shareholders in the insurance companies. The insurance authorities practice in many EU countries, as well as in many countries from the region, tolerates the emission of licenses for possession of majority participations in insurance companies to investors, which are insurance companies and/or insurance holdings, towards holdings which carry out an activity different from insurance. The main reason for that is the much better possibility of the authority figures for analysis of the financial situation of the potential strategic investor.
3) The constitution of EuroIns Insurance Group LLC is to be given more transparency of the financial reports of the insurance division (the biggest division both in incomes and realized profits), and in that way will be reached bigger transparency of the Eurohold Bulgaria financial reports. EuroIns Insurance Group will prepare consolidated financial reports, audited by an international auditor, which will include only the reports of the subsidiary insurance companies and thus, will give much more detailed financial information to the investors and more opportunities for following of all important financial indexes which characterize the activity of the companies from the Group.
4) As an independent company, EuroIns Insurance Group LLC will have also an easier access to the international capital markets when is necessary to collect financial resources for realization of future acquisitions.
At the General meeting of Eurohold Bulgaria there will be discussed also the investment strategy of Eurohold Bulgaria in the insurance activity sector.