Project description
and objectives:
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The EBRD proposes to acquire approximately 24 per cent of the share capital in Balta, Latvia from Codan a leading Danish insurance company and subsidiary of Royal & SunAlliance of the United Kingdom, following Codan’s recent acquisition of approximately 99 per cent of Balta. The Danish IØ Fund will also acquire approximately 17 per cent of Balta from Codan.
The investment will support the development of the Latvian insurance market and will contribute to the strengthening of the local capital markets.
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Transition impact:
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The project will bring in foreign know-how as Codan will introduce a comprehensive range of training programmes for local staff and increased product knowledge. Codan will also bring much-needed credibility through its high professional standards to an industry that has seen little foreign ownership to date. The project will also bring a greater emphasis on commercial insurance and thus to the provision of enhanced insurance products for companies and particularly small and medium-sized enterprises (SMEs).
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The client:
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Balta insurance group is a Latvian non-life and life insurance provider consisting of three companies: Balta, Latva and Rigas Apdrosinasanas Sabiedriba (RAS). Balta is the largest insurance group in Latvia and one of the largest insurers in the Baltics with a 21 per cent market share of the Latvian non-life insurance market and 29 per cent of the life assurance market.
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EBRD finance:
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Acquisition of approximately 24 per cent of the share capital of Balta for approximately LVL 5 million (€9.1 million).
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Total project cost:
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Approximately LVL 20 million ( €36.4 million)
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Environmental impact:
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Balta will conduct 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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Milton Stefani, Operation Leader: stefanim@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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