SAVA Re acquires Serbian insurer ENERGOPROJEKT GARANT

Slovenian re/insurance group SAVA Re has acquired a 92.94% stake in Belgrade-based ENERGOPROJEKT GARANT, a small Serbian insurer specialising in construction and liability insurance.

"SAVA Re is continuously seeking growth opportunities, also through acquisitions. Last year, one such opportunity presented itself in Serbia, when ENERGOPROJEKT Holding offered for sale 92.94% of the insurer ENERGOPROJEKT GARANT."

Established in 1992, ENERGOPROJEKT GARANT is a small Serbian insurer specialising in construction and liability insurance. SAVA Re estimated that taking over the insurer would allow it to further diversify its Serbian non-life insurance portfolio (away from motor business).

SAVA Re and ENERGOPROJEKT Holding signed a sales contract for 92.94% of the insurer ENERGOPROJEKT GARANT last November, with the contract being subject to obtaining all required approvals.

On 2 March 2018, SAVA Re obtained approval from Serbia's central bank, as well as from other regulators to purchase the above stake in the target.

Thus, on 9 March 2018, a block trade was announced on the Belgrade stock exchange for 146,155 shares representing 92.84% of the share capital of ENERGOPROJEKT GARANT - SAVA Re becoming the formal owner of these shares "as soon as they are transferred to its account with the local securities clearing company."

After the acquisition of this majority stake and subsequent steps towards attaining sole ownership, "SAVA Re intends to merge the target with its existing subsidiary, the Serbian non-life insurer SAVA Nezivotno, and then optimise the subsidiary's capital structure."

According to the most recent figures presented on the website of the National Bank of Serbia (the supervisory authority and regulator of the local insurance market), at the end of 3Q2017 the 17th active local insurers generated aggregate GWP of about EUR 595 million.

ENERGOPROJEKT GARANT's market share was 0.15% (GWP EUR 0.9 million), being the smallest insurance company in the market.

At the same time, the two SAVA Re subsidiaries, the life insurer SAVA Zivotno and the non-life unit SAVA Nezivotno generated GWP of EUR 1.25 million and EUR 12.8 million respectively.

"SAVA Re's acquisition of this stake in the Serbian insurer is a further step towards implementing its strategy of strengthening its position in the markets where it is present."

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

Share |

Related articles

A.M. Best assigns credit ratings to Dunav Re Company a.d.o. Belgrade

A.M. Best has assigned a Financial Strength Rating of B (Fair) and a Long-Term Issuer Credit Rating of "bb+" to Dunav Re Company a.d.o. Belgrade (Dunav Re) (Serbia), a subsidiary of Dunav Insurance Company j.s.c. Belgrade. (Dunav), a multi-line insurer operating in Serbia.

2018-08-20

STATISTICS: SERBIA, FY2017: positive trend in business; changes in preparation of the regulatory side

Serbian insurance market ended 2017 with FWP worth EUR 785.8 million, 8.8% up y-o-y, a result supported in part also by the Serbian Dinar appreciation against the European currency. In local currency, the GWP growth was of only 4.4%. Most of the market growth came from the non-life insurance side, which saw a 11% increase in premiums, thus raising its weight in the market portfolio by about 1.5 percentage points.

2018-05-03

ON THE MOVE

IGI appoints its first Chief Technology Officer

International General Insurance Holdings Limited (IGI), the international specialist commercial insurer and reinsurer, has announced the appointment of Nasser ZAGHA to the newly-created role of Chief Technology Officer.

15.11.2018

TOP EVENT

Reducing the risks in agriculture by using insurance means, discussed in Skopje

On November 1st, an Agricultural insurance conference took place in Skopje, Macedonia, organized by the Insurance Supervision Agency in cooperation with the Ministry of Agriculture, Forestry and Water Economy. Drawing attention to the necessity of reducing the risks in agriculture by using insurance was the event's main purpose.

06.11.2018

IIF 2018 - Insurance in a DIGITAL WORLD

Emmanuel DJENGUE, Innovation Director, Europe - RGAX, Spain is the Keynote Speaker at IIF 2018 - Insurance in a DIGITAL WORLD Conference in Bucharest, on November 27.

05.11.2018

See all