PPF Investments sold its stake in Romanian insurance companies ARDAF and RAI

Jun 25, 2008

PPF Investments has signed an agreement with Generali PPF Holding to sell its shareholdings in two Romanian insurance companies, ARDAF and RAI. The transaction is subject to the approvals of all relevant regulatory authorities.

PPF Investments acquired majority stakes in ARDAF and RAI in Spring 2007, thus gaining exposure to the fast growing and consolidating Romanian insurance sector. ARDAF was bought under forced administration as distressed asset with the intention to restructure it financially via capital injection and re-establish its position in the market. Acquisition of RAI was driven by the quality management team, which was subsequently engaged to lead ARDAF restructuring and to gradually utilise operational and distribution synergies of both firms.

PPF Investments strategy has proved successful. Under new management, ARDAF managed to re-establish itself in the insurance market - the company has undergone very successful MTPL campaign in Dec-2007/Jan-2008, revitalized its distribution network, renewed relationships with broker community, improved quality of its portfolio and introduced new products. Synergies of both ARDAF and RAI have been utilised, positioning both firms for further aggressive growth.

Divestment of both shareholdings to strategic partner is a logic step for PPF Investments as private equity investor.