Russia: SOGAZ looks to acquire VTB Insurance

SOGAZ Insurance Group is considering the possibility of further increasing its market share by acquiring VTB Insurance, said quoting its own sources on the insurance market.

According to mentioned sources, VTB Insurance is a captive insurer which mainly undertakes the business provided to it by banks of the VTB Group: "the chances of VTB Insurance to become a classical market insurer are minimal. Therefore, for shareholders, the option of selling the asset to SOGAZ could be more profitable, which, in turn, would sell products through VTB Group banks for high commission".

The sources estimate the value of the asset at about RUB 300 billion: "For SOGAZ, it will be problematic to acquire from own funds and it is possible that the insurer will borrow funds, as well as a third party may appear in the transaction - a bank that will receive a stake in the joint insurer".

In 2016, SOGAZ for the first time took the first place in the ranking of companies with 12.1% market share and GWP of RUB 143 billion, up by 15.9%. VTB Insurance in 2016 has been ranked on the seven places with a market share of 5%.

Follow XPRIMM Publications on LinkedIn, for more data on the insurance and financial industry.

Share |

Related articles

RUSSIA: agro insurance in 1H2018 dropped by 36%

The agro insurance segment based on the Central Bank dropped by 36% to RUB 1.66 billion in the 1H 2018. The biggest contribution to the segment was made by agro insurance without state support (+2.8% to RUB 904.3 million), according to the National Association of Agriculture Insurers (NAAI).



Public insurers appoint Achim Bosch to reinsurer board

The supervisory bodies of Deutsche Ruckversicherung AG and the Association of German Public Insurers decided today, to appoint Achim Bosch (53) to the executive board of the two reinsurers, where he will be responsible for non-life reinsurance.



HOEPKE, Munich Re: I expect at least a stable renewal round in 2019

After severe storm damage in Japan and the United States, Munich Re is looking with a little more optimism to the next renewal season. "I expect at least a stable renewal round in 2019," Board member Doris HOEPKE said in Baden-Baden. Until recently the reinsurer's expectations were leaning towards a stagnant season.



Five new XPRIMM insurance reports on the Baden Baden stands

Five new titles are available this year on the XPRIMM Baden-Baden press stands opened in the Kurhaus Casino and in Baden Baden main locations, presenting the latest statistical data and comprehensive analysis for the CEE, SEE and CIS insurance markets.


See all