Asiban shareholders up capital by ?6m prior to sale

The four banks, which each hold 25% in insurance company Asiban – BCR, BRD-SocGen, Banca Transilvania and CEC, will increase the insurer’s capital by 6 million euros (20 million RON), to 29 million euros (96 million RON). Each bank’s contribution will be 1.5 million euros (5 million RON).
The decision to conduct a capital increase was made at a general meeting at the end of August, with the sum to be paid within the next few weeks.
A few months ago, BCR, BRD-SocGen and Banca Transilvania announced that they intended to sell their stakes in Asiban, and recently CEC made the same decision. Initially, CEC officials decided to examine the possibility of acquiring the other three banks’ shares, but later changed their mind.
The consultant for the sale is the European investment bank Rothschild, with the legal side of the transaction being handled by law firm Tuca Zbarcea & Asociatii.
“The process has started and is following the usual procedure for this type of transaction. If everything goes well, the sale could be completed within four to six months,” sources with the company’s shareholders, told ZF.
According to company data, Asiban closed the first half of the year with a business worth 88 million euros (293.7 million RON), up 48% in euros against the same time last year. Life insurance accounts for 18% in the company’s portfolio, with gross underwritten premiums worth 15.9 million euros (almost 53 million RON). The company’s level of life insurance underwriting doubled against the first six months of 2006, while general insurance underwriting increased by around 40% in euros.
Almost 57% of the company’s sales consist in comprehensive insurance (41%) and auto liability insurance (almost 16%). The share held by these types of insurance fell by eight percentage points against the first half of last year.