TCS buys insurer Moskva from AlfaStrakhovanie group for $12.1 mln
MOSCOW. Oct 14 (Interfax) - The bank Tinkoff Credit Systems, or TCS Bank, bought 100% of the stock in insurance company Moskva from the group AlfaStrakhovanie for $12.1 million, according to the TCS IPO prospectus, which Interfax has obtained a copy of.
"On August 7, 2013, TCS Bank acquired a 100% stake in OJSC Moskva Insurance Company. The cost of the acquisition was $12.1 million. After the acquisition the name of the company was changed to Tinkoff Online Insurance LLC," the materials say. The bank plans for the subsidiary to provide TCS clients with insurance services.
"The insurer's combined assets and net assets to RAS [Russian Accounting Standards] on the date of acquisition were $10.9 million and $10.6 million, respectively. At the moment of purchase, OJSC Moskva Insurance Company possessed an insurance license, but was not conducting insurance operations and was not obliged to publish financial reporting, other than accounts reports, which were submitted to the Russian insurance oversight agency. The insurer had no profits or losses for the six months ending June 30, 2013. The bank expects that the consolidation of the results of the insurer and the financial report of TCS Bank will be for the third quarter of 2013," the materials say.
Tinkoff Online Insurance will begin operations with property, travel, life, and health insurance. Down the road it will add automobile insurance - collision and liability.
Oleg Tinkov, the bank's majority owner, said in early June that TCS might buy an insurance company in June, but he did not disclose its name. He did say it could be a large Moscow insurer.
TCS Bank was ranked number 64 by asset value in the Interfax-100 review of Russia's banks for the first half of 2013. Tinkov, the founder of the bank, owns 61% of shares.
