Renaissance Insurance, Russia’s largest online policy provider, is seeking acquisition targets from the country’s traditional insurers as it prepares for a possible IPO.
RenIns – which hired banks earlier this month for an IPO – is exploring ways to finance purchases and invest in its telemedicine business, board chairman Boris Jordan said in an interview .
“We have realized that we can consolidate traditional insurers on our infrastructure,” Jordan said. “The adoption of online services, especially in the financial services industry, is starting to grow, but it is still in its infancy” in Russia, he said.
Russian retail and tech firms are leading a local increase in share sales, following the trend of the global IPO market as countries recover from the pandemic. Renaissance Insurance has selected JPMorgan Chase & Co., Credit Suisse Group AG and VTB Group as global coordinators to work on a possible offer, according to people familiar with the plans.
A document of intent to float could arrive in September, with the company seeking to raise around $ 250 million and shareholders offering up to $ 150 million in stake, the people said, asking not to be identified because the information are private.
Jordan declined to comment on a possible deal.
Jordanian group Sputnik and its partners hold 53% of the capital, and a group of investors linked to billionaire Roman Abramovich and some of his business partners bought nearly 29% of the company in May. The Baring Vostok investment funds are among the other shareholders.
RenIns has 3.6 million customers and is growing faster than the market, according to Jordan. Since the pandemic, its direct-to-consumer offerings have been its fastest growing segment, he said.
Renaissance companies held a 5.1% share of Russian insurance premiums in the first half of 2021, placing them in the top ten of local insurers, according to rating agency Expert RA.
The company aims to take market share from “traditional insurers who are not as nimble,” Jordan said.
RenIns’ telemedicine start-up Budu, which she founded this year, is one of her most promising businesses, Jordan said.
RenIns owns a 49% stake in Budu, with RenIns shareholders owning the remainder. The company was established to provide regional customers with better medical services and now offers its services to a wider market.
“Making that first diagnostic online is going to be extremely economical,” Jordan said. “Russia embraces this, but it needs to create a regulatory framework. “
Copyright 2021 Bloomberg.
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