Not that we are particularly partial to Axa, but recently all M&A rumours in the region are about the French group. Over the weekend, the CIS insurance market mulled over the possible sale of an interest in Ukrainian leader Oranta, and Axa is said to be among the main bidders, with VIG and Uniqa also on the list, our Ukrainian sources state. Russia-based investment group Troika Dialog is reported to organize the deal.
A well informed market professional in Kiev told our blog that Axa is about to sign the agreement to acquire a share in Oranta for UAH400 million, or approximately EUR37 million.
Our sources estimate the total value of the insurer at “no less than USD100 million”. It’s likely that the interest in question currently belongs to Ukrainian mogul Viktor Pinchiuk.
If the information is indeed correct, Axa will become the largest insurance player in Ukraine, leaving other companies far behind.
In the first nine months of 2010, Axa generated a premium income of UAH537.7 million (EUR52.2 million), up 7.8% on 9M 2009. Oranta’s result for the first three quarters was UAH465.2 million (EUR45.1 million), down 13.5%. The two companies occupied the second and the third place, respectively – but together they could easily beat the market leader Kremen, which in 9M 2010 wrote UAH830 million (EUR80.5 million) in premium.
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