Sovcombank Group completing talks on purchasing Absolut Insurance LLC, deal estimated at 10 bln rubles - sources

MOSCOW. Sept 24 (Interfax) - JSC Sovcombank Insurance is completing talks on acquiring the Absolut Insurance LLC universal insurer, a source in the insurance market told Interfax.

"The talks are at an advanced stage, due diligence has been completed, and the volume of the transaction is estimated by analysts at approximately 10 billion rubles," the source said.

Another source in the insurance market has confirmed the information to Interfax without assessing the value of the company under acquisition. The source said that, "The deal, in principle, fits in well with the strategy of Sovcombank Insurance, as the company has announced plans to enter the top ten insurance market leaders in terms of premiums received in a short period of time. The market participant has already acquired several insurers operating in different market segments in recent years, and continues to analyze the possibilities for these deals in anticipation of rapid business growth."

Absolut Insurance's press service has not confirmed the information about the possible deal to Interfax. Sovcombank Insurance's press service has also declined to comment on the matter.

SPARK-Interfax data indicate that the Gamma Capital closed-end investment fund, managed by Absolut Asset Management LLC, is the current owner of Absolut Insurance.