Co-owner of BIN group found a way to get rid of unprofitable insurance

The shareholders of insurance house VSK and group BIN are going to combine their insurance companies. Now there are negotiations, announced on Monday, April 11, the press service of the FAC and confirmed the co-owner of the BIN group Mikhail Shishkhanov.

Earlier “Interfax” citing a source reported that the Bank is going to buy 49% of VSC. However, the press service of the FAC in its report, noted that negotiations are being conducted by shareholders of the company, and the participation of the Bank in the capital of the insurer “is not considered and not discussed”. Redeem shares of FAC plans Mikail Shishkhanov, told the source in group BIN.

“Our goal is to create a large and successful player in the insurance market through consolidation. When we are satisfied with this option, in which we will be minority shareholders of the United insurance company”, — the words shishkhanova press service.

Buy shishkhanova stake in VSK is only the first step. The second should be to join VSK company “BIN Insurance”, says a source in group BIN and confirms the familiar with the top management companies in Finance. It is planned that the share of shishkhanova the combined company will be about 45%.

If the deal goes through, the combined company will be created “on the basis of FAC, the shareholder will remain in control of the capital”, said the press-service VSK. According to the IFRS in 2014, the beneficiary is VSK Sergey Tsikalyuk (he owns directly 8,2195% of the voting shares).

While the parties have not signed any binding documents. The final decision will be made in the first half of 2016, said VSK.

“It is possible to integrate the VSC and “BIN Insurance” will strengthen the positions of the two companies and create a major player, able to occupy a leading position in the insurance market”, — stated in the official comments of the VSC. The merger is beneficial to both parties to the transaction, says a financier, familiar with top managers of both companies: “For shishkhanova is the ability to “build” a losing business, and for Colaluca to repay the loan to Sberbank”.

The BIN group since last year tried to sell its insurance business, said a source in the group. However, to find a buyer for an unprofitable company with declining market failed, says a source close to the group. “The last two years the group sanitizes unprofitable portfolio “BIN Insurance”. By the end of 2015, the insurance company again reported a net loss of (116,4 million RUR under Russian accounting standards). Given the difficult situation on the insurance market generally, to obtain the positive result the company will be difficult”, — said the head of the analysis Department of the insurance sector NRA Tatiana Nikitina.

“When you merge insurance companies Shishkhanov does not claim to control, which actually means the transfer of non-core business,” says a source close to the group. In comments Shishkhanov said that talks on the merger of the insurance business with the VSC, but also with “other possible partners”.

FAC by the end of 2015 under RAS received a net profit of 3.1 billion rubles, reported the press service of the company. April 2, rating Agency RAEX confirmed the reliability rating of the VSC at the level of A++ “Exceptionally high reliability level” with a stable Outlook.

The loan, which Tsikalyuk must pay to Sberbank, appeared from beyond the last attempts to sell a stake in the company. In autumn 2011, the co-owners of RESO brothers Sergey and Nikolay Sarkisov was going to buy 25% plus one share of FAC. As part of this transaction in December 2011, RESO has issued two loans ($26,364 million at LIBOR plus 4.5% and 790,9 million rubles at 9% per annum) of the company Coridge Investments Limited, an affiliate of Colaluca, bail block package VSK, wrote “Vedomosti”. However, the purchase did not take place: Deputy General Director “RESO-Guarantees” Igor Ivanov said that in the conditions of crisis in the CTP market to make any investment “untimely and irresponsible”. To pay the debt twice, Tsikalyuk took the credit in Sberbank-3.3 billion rubles on the security of shares of VSC, said he was “Primo”.

Sergey Tsikalyuk on Monday, April 11, did not respond to calls .

For 2015, VSK was able to collect 48.1 billion rubles, “BIN Insurance” — almost 2 billion rubles.