Direct Insurance - Financial Investments Ltd. (TASE: DIFI) has launched insurance operations in Russia. In line with a strategic decision to enter the Russian non-life insurance market, the company last week announced that it signed an MOU to acquire 93% of Energopolis for $230,000 (about NIS 1 million).
Direct Insurance began its Russian activity two months after signing a partnership agreement with the European Bank of Reconstruction and Development (EBRD) to jointly set up activity in Russia.
On September 21, Direct Insurance subsidiary Global Direct Insurance Investments BV (GDII), which handles the company’s business outside Israel, signed an agreement with Samarra-based Energopolis and six of its shareholders to acquire of 93% of the company’s shares. Direct Insurance said Energopolis representatives said they had valid licenses from the Russian authorities to operate as an insurance company in certain property and liability sectors, including compulsory and third-party vehicle insurance. Direct Insurance intends to use Energopolis as a platform to develop its business in Russia, similar to the company’s activity in Poland and pending activity in the Czech Republic.
Direct Insurance said closing the acquisition was subject to obtaining permits from the Russian regulatory agencies and other preconditions and closing conditions.
Published by Globes [online], Israel business news - www.globes.co.il - on September 26, 2006
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