The European Bank for Reconstruction and Development (EBRD) has purchased a 15% stake in the Greek insurance firm European Reliance.
The stake is part of the 28.7% previously held by Piraeus Bank, which was divested as part of the bank’s plans to divest non-core assets.
European Reliance’s management will purchase remaining 8.7 stake in the company, while financial investors Orasis Fund SPC and Serengeti Asset Management will each own 2.5% stake.
Listed on the Athens Stock Exchange, European Reliance is a composite insurer in the Greece.
The company operates in all modern insurance sectors, offering full coverage to individuals and companies. It generated total gross written premiums of €167m in 2015.
EBRD’s investment will support the expansion of European Reliance, in addition to facilitating the restructuring efforts of Piraeus Bank.
EBRD financial institutions, insurance and financial services director Noel Edison said: "This is an important step in the EBRD’s activities in Greece. Our investment will support a well-run local insurance company, contributing to greater competition in the market for the benefit of local customers."
European Reliance CEO Christos Georgakopoulos said: "The participation of the EBRD, a very important organisation, in the share capital of European Reliance, is a vote of confidence in the company’s growth prospects and its management."
Image: EBRD acquired a 15% stake in Greek insurance firm European Reliance. Photo: courtesy of European Bank for Reconstruction and Development.