EBRD becomes owner in Omniasig

The European Bank for Reconstruction and Development (EBRD) indirectly became an owner in Omniasig, due to its participation in the share capital of investment fund TBI Holding, which holds the main stake in the Romanian insurance company, partnership that is to be announced today.

The European Bank for Reconstruction and Development will hold 32 percent of TBI Holding stock, together with Israeli investment fund Kardan, with 47 percent, and Deutsche Bank Private Equity, with 30 percent, whose stakes subsequently dropped from 60 percent and 40 percent, respectively.

TBI Holding owns 51 percent in Omniasig, the second-largest insurance company in Romania, according to still unofficial data for the first six months of the year.

The rest of the shares are divided among Banca Comerciala Romana (Romanian Commercial Bank – BCR), which holds a 22 percent stake, and foreign and Romanian natural persons, with 24 and 3 percent, respectively.

“I believe that EBRD involvement will give more strength to the company and will suggest to foreign investors that they can have confidence in the Romanian market, Omniasig chairman Constantin Toma yesterday told Ziarul Financiar.

EBRD interest in insurance sector is not of recent date. In 1998, the European Bank for Reconstruction and Development was co-investor with TBI Holding in Bulstrad, the second-largest insurance company in Bulgaria, after which it withdrew in favour of the investment fund.

TBI Holding took over the position of main shareholder in Omniasig in June 1999, from the former Bancorex. Omniasig posted receipts of 360 billion lei on the first six months of the year.