EBRD Investst in Bulgarian Insurance Sector.

25.02.2000

EBRD would participate in the divestiture of the State Insurance Institute /DZI/ if its presence in the process is necessary according to Jonathan Wullet, EBRD director of non-banking institutions department. The final decision, however, will depend on the insurance institute's financial results and on the evaluation due to be prepared by Deloitte & Touche, as well as on the price to be asked. Wullet publicly announced EBRD's new investment, which amounts to EUR 5 million. The bank becomes shareholder in the newly established company Bulgarian Insurance and Pensions /BIP/. EBRD's equity in the new company is 30%, the remaining 70% of the company's BGN 32 million capital is held by TBI - a consortium between Israel's Kardan Investments, Talladium Group and Deutsche Bank. The Israeli-German company transferred its shares in Bulstrad, a major insurer and re-insurer, and Doverie, a local pension fund, to the BIP according to the agreement for setting up the new company. Thus in fact BIP becomes majority interest holder in Doverie, where it holds 85% of the capital, and in Bulstrad, where it holds 51% of the capital. BIP plans to expand its operation by investing in other local insurance, pension and health funds