France-based credit insurer Coface has agreed to acquire 100% stake in PKZ capital, a credit insurance subsidiary of Slovenian public bank SID Bank, for an undisclosed price.
Image: Coface to acquire SID Bank's credit insurance subsidiary PKZ. Photo: courtesy of Swaf75/Wikipedia.org.
Founded in 2005 by SID Bank, PKZ is said to have a strong market share in credit insurance in Slovenia.
Last year, the company registered €15.1m of gross written premiums on an export business focused portfolio.
Coface Central Europe region CEO Declan Daly said: “This acquisition will strengthen our footprint in Central Europe and will improve the service we provide to our customers in this region.
“PKZ benefits from solid market shares and we count on the contribution of its teams, who will join our regional platform to continue its development.”
The types of credit insurance offered by PKZ to companies, especially Slovenian export companies, are whole turnover insurance, single transaction insurance and advance payment insurance.
The Slovenian insurance company is also a member of the International Credit Insurance and Surety Association (ICISA).
Coface CEO Xavier Durand said: “This acquisition is perfectly aligned with Coface’s strategy. We are strengthening our presence in a strategic and growing region.
“This agreement demonstrates Coface’s ability to grow selectively and to allocate capital efficiently, in line with the objectives of our Fit to Win strategic plan.”
Coface’s acquisition of the Slovenian credit insurance provider will be subject to routine regulatory approvals which are anticipated to be granted in the coming months.
The French firm said that the acquisition could result in a slightly positive impact on its earnings per share in 2019 apart from a neutral impact on its solvency ratio.
Headquartered in Bois-Colombes, Coface has presence across 66 countries and employs over 4,000 employees. It offers adapted risk prevention, monitoring and protection services to firms of all sizes and nationalities and in all sectors.
The French firm also offers a range of credit insurance services to shield companies against potential non-payment by their customers, with cover offered in nearly 200 countries.
In late June, Coface announced the sale of its 36% stake in Cofacrédit, a factoring company, to Factofrance as it deemed it to be a non-strategic asset.