ALROSA has sold its 99.74% stake in ALROSA Insurance Company to SOGAZ.
The companies signed a share purchase agreement on 20 November. The deal was priced through an open auction at RUB 620 mln. ALROSA has already received the payment.
ALROSA sold its insurance business as part of the corporate non-core asset disposal programme to focus on diamond mining exclusively. The change of ownership will not affect outstanding insurance contracts.
ALROSA IC offers insurance coverage to retail clients and corporates, including ALROSA and its subsidiaries, jewellery companies, large industrial enterprises, variety of small and medium businesses, banks, leasing companies, car dealers.
According to the Central Bank of the Russian Federation, the insurance charges of ALROSA IC amounted to RUB 433.8 mln in H1 2014 (106th position in Russia), insurance payouts totalling RUB 134.2 mln. Optional medical insurance is the bulk of portfolio (43%). Another 17% of charges accounts for corporate property insurance (except vehicles and cargos), 16% for cargo insurance, 6% for hull coverage, and 2% for obligatory motor insurance.
SOGAZ Insurance Group embraces SOGAZ Insurance Company, Transneft Insurance Company, SOGAZ-Med (healthcare), SOGAZ-Life, SOT-Trans, SOVAG of Germany, SOGAZ a.d.o. Novi Sad of Serbia, SOGAZ International Healthcare Center, and SOGAZ Medservice (healthcare operator). The Group has over 600 subsidiaries and sales offices throughout Russia.