Renaissance insurance and Blagosostoyanie pension fund merge. Transaction amount – 27 billion roubles

Renaissance insurance
Renaissance insurance

Federal Antimonopoly Service (FAS) approved the merger of the assets of the “Renaissance insurance” group and non-state pension fund (NPF) “Blagosostoyanie”. The decision was adopted on 31 August as a result of the analysis of the country’s insurance market which did not identify any evidence of possible restrictions of competition, said FAS deputy head of control of financial markets Lilia Belyaeva. The structure of the deal is not disclosed.

“Renaissance insurance” and “Blagosostoyanie” applied to the merger, the Parties expected approval by mid – end of August 2017.

The combined company will include “Renaissance insurance”, IC “Renaissance life”, “InTouch insurance”, “Blagosostoyanie”, “Blagosostoyanie OS”, NPF “Blagosostoyanie emensi”, MC “Sputnik”, medical company “Medcorp”, it will work under brand “Renaissance insurance”, said earlier the owner of the group Boris Jordan. What brands will be retained will be resolved within three months of the development strategy of the new company. It is planned to keep the brand “InTouch,” says Mr. Jordan.

The assets of the companies that will be included in the new structure, according to the international standards at the end of 2016 are estimated at 63 billion rubles, capital – 13 billion rubles (estimated). However, given the fact that the new members invest cash – this will increase assets and capital. Presumably the assets of the combined company will be about 65-75 billion rubles., capital – 15-20 billion rubles.

Control of the new structure (52,1%) through the “Sputnik” group will remain with Boris Jordan. While management company “Transfingroup” (operates pension reserves of NPF “Blagosostoyanie”) will receive a share of 35.8%,  and Baring Vostok would have 12.1%.

According to a senior employee of one of the companies, there were no changes in the terms of the planned deal: the amount of the transaction, the organizations that will be in the new structure and the composition of shareholders have not changed.

The deal will amount to 27 billion rubles., Baring Vostok will invest 3.2 billion rubles., the other parties did not disclose the size of their investment.

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