Romstrade will buy 98.57% of the insurer’s stock, for EUR6.69 million, from Hidroconstructia (55.22%), Iridex Group Import Export SRL (17.6%), Apasco SA (4%), Iridex Grup Constructii SRL (2.23%), Energoconstructia (1.46%), Proimsat SA (0.91%), Emivas Cons SRL (0.15%), Apa Proiect SRL (0.14%), Cominco SA (0.34%), Frigotehnica SA (0.23%) and 163 natural persons (16.84%). Romstrade will pay EUR4.5 per share.
Cominco SA and Frigotehnica SA will remain shareholders, with 0.33% and 0.23% of the capital, respectively, as will a number of natural persons, with a combined 0.88%.
ABC Asigurari was set up in 1997 and sells general insurance exclusively. The insurer underwrote premiums of RON18.15 million in 2010, up 6.5% on the year, and its net profit dropped 83.5% to RON39,765.
Revenues from underwritten premiums amounted to 6.92 million lei (EUR1.51 million) on the voluntary car insurance segment (CASCO), and to RON5.68 million of the mandatory car insurance segment (RCA), according to data released by insurance regulator CSA.
Last year, the general and life insurance market fell 4.3% to RON7.95 billion, due to a 6.5% decrease registered on the general insurance segment to RON6.21 billion, according to CSA.
With turnover expected to reach EUR200 million in 2012, Romstrade SRL is one of the most important companies in the group controlled by Nelu Iordache, which also includes low-cost airline Blue Air. (EUR1=RON4.5571)