VTB to get cash, 10% of merged insurer and board seat in deal with Sogaz
MOSCOW. Nov 1 (Interfax) - VTB Group has closed a deal to sell 100% of VTB Insurance to insurer Sogaz , the companies said in a joint press release.
The transaction includes all companies within VTB Insurance Group, including VTB Life Insurance and VTB Medical Insurance.
The insurance assets will be integrated into Sogaz, with VTB receiving a 10% stake in the merged company and a seat on its board of directors, as well as compensation in cash. The parties have not disclosed the financial terms of the deal.
"VTB Insurance Group will continue to fulfill its commitments to customers in full until the integration with SOGAZ is completed," the press release said. "Within the first stage of the merger following the closure of the acquisition deal, VTB Insurance Group will continue to operate under its brand, switching to Sogaz's brand once the integration process is completed."
Based on forecasted IFRS financial results for 2018, the aggregate premiums paid to Sogaz and VTB Insurance groups could reach over 330 billion rubles, and their cumulative assets could exceed 670 billion rubles.
"When the transaction is completed, VTB and Sogaz are expected to cooperate in selling insurance products to VTB Group customers and banking products to Sogaz Group customers," the companies said.
"The deal to sell the insurance assets will help VTB Group focus on its banking business, while retaining a stake in a major insurance company set to become a market leader following the merger. In addition, VTB Group acquires in Sogaz a major partner that will offer reliable insurance coverage to VTB clients," the press release said.