The shareholders of Euroins Romania commit to further invest in the Romanian insurance market as the company announces another round of capital increase worth over 120 million lei, after two other recent successive capital increases worth over 126 million lei.
The proposed capital increase will be voted in the next Extraordinary General Meeting of Shareholders of Euroins Romania to take place on September 15th, 2021. With this 120 million lei capital increase, Euroins Romania Asigurare Reasigurare SA will reach a total capital increase of over 246 million lei in the past months. This increase is part of the continuing effort of Euroins Insurance Group (EIG) AD to support the local market growth and to strengthen its position on the Romanian market.
With these three successive capital increases, Euroins Romania will significantly strengthen its capital position in line with its further strategy to decrease its exposure in MTPL and to diversify its portfolio.
“This round of capital increase comes in the context in which our company is on a big transformational path. It is normal to increase the capital to comply with the new legal requirements introduced in 2021, but also to be able to follow our strategy throughout. We are dedicated to increase the quality and diversification of our insurance portfolio; thus, we want to maintain our development on other products, inovative non-MTPL insurance, such as health policies, travel, accident and liability for which we already have a significant growth between 80%-180%. Our main objective is to strengthen the company’s market position and to improve our financial results. The improvements in the first quarter of 2021 come hand in hand with Euroins Romania Asigurare Reasigurare SA long-term objective to be a reliable partner for our clients and intermediaries”, stated Tanja Blatnik, CEO.
Euroins Insurance Group (EIG) AD is one of the largest independent insurance groups operating in the EEC / EEA / FSU region. The company is focused on offering a wide range of general, health and life insurance products. The group is headquartered in Bulgaria and operates in eleven European countries. It has insurance subsidiaries in Bulgaria, Romania, North Macedonia, Ukraine, Belarus, Russia and Georgia. EIG also operates in Greece and Poland and has niche insurance operations in Spain and Italy. Currently, the insurance group has over 4 million customers and over 3,000 employees. EIG is a subsidiary of Eurohold Bulgaria, a leading independent group operating in Southeast Europe, listed on the Sofia and Warsaw stock exchanges. Eurohold Bulgaria is active in insurance, leasing, car sales, asset management and investment operations.
Recently, Eurohold, has officially completed the acquisition of seven subsidiaries of Czech energy group CEZ in Bulgaria for EUR 335 million. As a result of the transaction, Еurohold, through its wholly owned subsidiary Eastern European Electric company B.V. (EEEC), has acquired the largest distributor, supplier and trader of electricity in Bulgaria. Upon acquisition and integration of CEZ Group’s assets, Еurohold will focus on two main segments – insurance and energy, more than doubling the number of customers it serves to over 7 million, and employing more than 6,000 people in 11 countries in Central, East and Southeast Europe (CESEE) and the former Soviet Union (FSU). On the long-term, Eurohold aims to develop EEEC into one of the leading utility services providers in the region and will look for opportunities to expand its operations in neighbouring countries. The total assets and revenue of the enlarged holding are expected to exceed EUR 1.5 billion, while its EBITDA is forecast to reach around EUR 120 million per annum. According to its strategy, Еurohold expects to generate revenue and EBITDA of almost EUR 2 billion and EUR 200 million per annum by 2025, respectively.