BULGARIA: Global Finance Fund to Invest in Eurohold Insurance Biz

South Eastern Europe Fund, a vehicle of Greek investment fund Global Finance, said it will invest EUR 26 mln in Bulgarian insurance subholding company Euroins Insurance Group (EIG).

A capital increase at the subholding will leave SEEF in possession of a 20% stake.

Further details will be released after the deal is completed.

EIG is the catch-all structure for the insurance business of Eurohold Bulgaria. It comprises Bulgarian insurer Euroins, Euroins Romania, Makosped Macedonia and Euroins Health Insurance.

Eurohold supervisory board chairman Asen Hristov said the SEEF cash will be spend on investment.

EIG was set up in 2007 after Eurohold acquired insurance businesses in Romania and Macedonia.

Global Finance said it will finance EIG's acquisitional growth on markets like the Ukraine and Russia.

The EIG region-wide clientbase is around 700 000. Consolidated profits are seen up 40% year-on-year to 95 mln euro in 2008.

The strategic goal of the subholding is to reach a 5% share on each of the markets where it operates.

The Bulgarian insurance unit of the company had a market share of 4.95% in terms of gross premium income by the end of April 2008.

The Global Finance portfolio features equity stakes in more than 60 Bulgarian, Greek and Romanian companies.

In Bulgaria, the fund has invested in gourmet coffee chain Onda, supermarkets Familia, frozen fries maker Royal Potatoes, croissant maker Chipita Bulgaria and the United Milk Company.

Source: Dnevnik a.m.