VTB and SOGAZ close deal to merge insurance assets

Dow Jones received a payment from EQS/DGAP to publish this press release.

JSC VTB Bank (VTBR) 
VTB and SOGAZ close deal to merge insurance assets 
 
31-Oct-2018 / 18:11 CET/CEST 
Dissemination of a Regulatory Announcement, transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
 
VTB and SOGAZ close deal to merge insurance assets 
 
VTB Group has closed the deal to sell 100 percent in its insurance unit, VTB 
 Insurance, to SOGAZ Insurance Group. The transaction includes all companies 
    within VTB Insurance Group, including VTB Life Insurance and VTB Medical 
  Insurance. All necessary regulatory approvals were obtained. The insurance 
  assets will be integrated into SOGAZ with VTB receiving a 10 percent stake 
      in the merged company and a seat on its board of directors, as well as 
         compensation in cash. The parties do not disclose the transaction's 
                                                            financial terms. 
 
VTB Insurance Group will continue to fulfil its commitments to the customers 
                      in full until the integration with SOGAZ is completed. 
 
           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 the forecasted IFRS financial results for 2018, the aggregate 
    premiums paid to SOGAZ and VTB Insurance groups could reach over RUB 330 
        billion, while their cumulative assets could exceed RUB 670 billion. 
 
  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 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. 
 
ISIN:          US46630Q2021 
Category Code: MSCU 
TIDM:          VTBR 
LEI Code:      253400V1H6ART1UQ0N98 
Sequence No.:  6395 
EQS News ID:   740211 
 
End of Announcement EQS News Service 
 
 

(END) Dow Jones Newswires

October 31, 2018 13:12 ET (17:12 GMT)