Launched in September 2012, the EMF New Europe Insurance Fund is focused on investing in the insurance industry in the CIS and Non-EU Central and Eastern European Countries (including Albania, Armenia, Azerbaijan, Georgia, Belarus, Kosovo, Macedonia, Montenegro, Moldova, Serbia, Russia, Turkey and Ukraine).
The target countries have an insurance penetration which is below that of the EU member Eastern European countries and much lower than the more developed EU markets. The insurance sector in the target countries is therefore projected to grow at a significantly faster pace than in the EU. The fund intends to create value in the portfolio companies by stabilising their current business and developing profitable product lines in an expanding market.
Our investors are highly supportive of our targeted sector approach and, in many cases, have their own in-depth understanding of the sector. We are therefore privileged that they have chosen to explore this exciting sector and region through NEIF. Our dedicated investors include a leading, international insurance Group and some of Europe's largest development financial institutions.
Through the support of our Limited Partners we have the opportunity to increase our investment size.
NEIF invests in insurance and insurance related companies located in non-EU countries in the CIS and Eastern Europe, including Turkey, Russia and Ukraine. We seek to invest $5mn - $20mn of equity into majority positions. For larger investments our LP's are also in the position to co-invest alongside us. Our preferred investments will typically have the following characteristics:
• Talented and enthusiastic management teams
• Attractive prospects for growth via organic expansion, development into new product areas and/or acquisition
• Revenue generating and EBITDA positive
• High return potential on invested capital
In each investment NEIF aims to draw upon it's wealth of knowledge in the insurance sector and provide guidance and significant added value to the investee company wherever possible.
On 14 January 2014, EMF completed an investment into, Moscow-based, Virtu Systems - a Russian insurance software company specialising in front-end/distribution solutions for the insurance industry. The Virtu founders will remain an integral part of the company, whilst EMF becomes Virtu’s largest shareholder
Virtu was founded in 2008 by a group of Russian IT entrepreneurs and is focused on providing seamless online communications and data exchanges between insurers and their distribution channels. Most Russian insurance products are sold in paper form and communication between agent and insurance company is slow and inefficient. Automating the insurance sales process is a huge cost saving and efficiency opportunity for the industry as a whole.
Virtu has established a significant product lead in this market and is one of the most popular and widely used front-office systems on the Russian insurance market, used by many of the top insurers including domestic and international companies.
The investment has allowed Virtu to expand its team and keep pace with demand. It will also enable the company to complete its new product range, with the aim of eventually entering international markets.
Unico Sigorta A.Ş.
On 18 December 2014, EMF Capital Partners completed the acquisition of Aviva Sigorta A.S., the Turkish non-life insurance company, from Aviva plc. The acquisition was made by a consortium of investors, led by EMF. These investors comprise the EMF New Europe Insurance Fund, DEG (the German development bank) and FMO (the Dutch development bank). As of 15 September 2015, the company has formally changed its name to Unico Sigorta A.S.
Established in 1988, Unico Sigorta A.S. offers a combination of personal and commercial insurance products. The company has approximately 200 staff spread across five regional offices and benefits from an extensive distribution network.
The company wrote over TL 270 million of gross written premium in 2013.
Unico Sigorta A.S. is listed on the Borsa Istanbul.
On 27 June 2014, EMF Capital Partners completed an investment into, Kiev-based, Talisman - the first and only purely direct non-life insurance operation in Ukraine. EMF is the largest shareholder holding a majority stake in the business.
On 22 October 2015, EMF Capital Partners completed the acquisition of a minority stake in General Automotive Services B.V., the parent of Auto King – a chain of automotive repair shops across Turkey and Russia. EMF will work with the majority shareholders, PERA Capital Partners to further build on the success of Auto King in these and other markets.
Auto King was founded by the Yucetin family in 2002 who have built the business to its current position as the largest independent repair chain in Turkey and as of today, have now sold all of their shares in the company. Auto King currently has 52 outlets across Turkey and 1 outlet in Moscow. The business currently serves the auto repair needs of insurance companies, other B2B repair markets and the general consumer.
Monopoli Sigorta A.S.
On 16 May 2016, EMF NEIF completed its investment into Monopoli Sigorta A.S. (‘Monopoli’), an Istanbul-based leading insurance agency, acquiring a joint controlling stake. Monopoli was founded in 2005 and offers all types of non-life policies to thousands of its individual and corporate customers.
Monopoli aims to continue its high growth trajectory of the last 10 years with its unique products, customer friendly and efficient sales strategy, well-structured operational IT infrastructure, and a sub-agency consolidation model.
Demir Hayat Sigorta A.S.
On 23 November 2016, EMF NEIF completed its investment into Demir Hayat Sigorta A.S. (‘Demir Hayat’), acquiring 100% of the shares. Demir Hayat was founded in 1995 and offers health, life and personal accident insurance cover to its retail & corporate customers.
The company wrote over TL 55 million of gross written premiums in 2015.