Project description
and objectives:
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The EBRD is considering participating in the forthcoming capital increase in Russia Life Investments Limited, a UK holding company, which in turn would allow for an equivalent capital increase in Principal, a Russian insurance company. Participation in the capital increase would allow the EBRD to maintain its stake alongside Pohjola, a Finnish insurance company. This supports the EBRD's previous investment of US$ 325,000 in 2000. The investment will continue to support the development of the Russian non-life insurance market.
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Transition impact:
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Given the low level of ownership by experienced strategic investors and the early stage of the development of the Russian insurance market, the transition impact of this investment is considered to be strong. Pohjola Insurance Group is one of a very few foreign investors present in the Russian insurance market, and the EBRD’s involvement supports Pohjola’s efforts to develop further sound insurance business in Russia. With a strong shareholder structure, transparent operations and reinsurance support from Pohjola, Principal contributes to the development of the insurance market in Russia.
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The client:
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Principal is a Russian insurance company writing a range of non-life insurance business. Although the company’s current level of premiums written is small, the outlook for the company’s growth is promising. The EBRD participates in this project alongside Pohjola, Finland’s second largest insurance company, which brings the company additional technical expertise and management support.
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EBRD finance:
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Equity investment of US$ 357,500 (€393,250 equivalent). Previous EBRD investment of US$ 325,000 million.
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Total project cost:
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Equity capital increase of US$ 1.1 million (€1.2 million equivalent). Total project cost US$ 2.1 million (€2.3 million equivalent).
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Environmental impact:
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Principal conducts its insurance and asset management operations in accordance with the EBRD’s Environmental Guidelines for the Insurance Sector.
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Technical
cooperation:
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None.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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EBRD contact:
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Dmitry Piskulov, Operation Leader: piskulod@mos.ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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