OREANDA-NEWS. February 01, 2010. SOGAZ Insurance Group has made a decision to establish an insurance company in the Republic of Serbia. This was announced by Vadim Yanov, the Chairman of the Board of SOGAZ at the meeting with pressmen on Tuesday.

Serbiagas, a publicly-owned company and a leader of the Serbian gas industry will become a cofounder of SOGAZ Insurance Company in Serbia. The authorized capital of this insurance company will constitute at least €5 million. The shares of SOGAZ Group and Serbiagas in the authorized capital will constitute 51 and 49 percent respectively. It is planned to invest about €7.5-8 million during the nearest three years, and half of this amount will be invested by SOGAZ. The new company will be registered in February–March and will start its operations in May–June 2010.

The Company’s development strategy for the first three years will be based on establishment of direct contacts with Serbian companies, including companies with participation of foreign capital. Later on the company will probably address intermediaries (banks, brokers), as well as promotion in the noncorporate sector.

It is planned that at the initial stage, the major customers of SOGAZ Insurance Company in Serbia will include Serbian enterprises with participation of Russian capital, such as Oil Industry of Serbia (NIS – Nafta Industrija Srbije, where Gazpromneft OJSC owns 51% of shares), Yugorosgaz, Banatsky Dvor UDS, and companies involved in the strategic European South Stream Project. The Company will focus on insurance of fixed assets including production facilities, petroleum depots, oil tanks, other buildings and constructions, as well as vehicles, special-purpose equipment, cargoes, and civil liability. SOGAZ in Serbia may fully rely upon experience of SOGAZ Group in insurance of risks of the Fuel-and-Energy complex. Special attention will be paid to the medical and health resort infrastructure of Balkan Region in health insurance plans offered by SOGAZ Group.

It is expected that SOGAZ Insurance Company in Serbia will receive €6.5 million as insurance fees in 2010, €14.9 million in 2011, and €19.8 million in 2012.  The share of the new insurance company on the insurance market (except for life insurance) is estimated as 3% at the first stage. SOGAZ Insurance Company in Serbia does not aim to cover large-scale insurance segments, but the Company builds upon high rates in the sphere of its core specialization, i.e. coverage of risks in the fuel-and-power sector.

According to Vadim Yanov, establishment of the company fully corresponds to the development strategy of SOGAZ Insurance Group up to 2012 as related to its international expansion, and also offers SOGAZ scope for insurance of risks of Group’s corporate customers operating on the Serbian market. “Development of cooperation between Russian and Serbian businesses is one of the primary reasons for our choosing this country, says Vadim Yanov. “We consider this company not only as a representative office in the Republic of Serbia, but also as a base for further advancement to the Eastern and Western Europe. From the very beginning Company’s activities will be aimed at gaining a stable position on the Serbian insurance market and building an image of a successful market player, which will enable to increase the share of local customers.”