ASA KINDLUSTUS AS

ANNOUNCEMENT

08.07.1999

 

DISPOSAL OF MAJORITY SHAREHOLDING IN ASA KINDLUSTUS AND AB 

ELUKINDLUSTUSES

 

On July 8, AS AB Kindlustuse Grupp (majority shareholder of ASA 

Kindlustus 

AS) concluded a contract for sale of controlling interest in ASA 

Kindlustus 

AS and AB Elukindlustuse AS with Multinational Consultants Ltd, a 

representative of holding company Pacific Overseas. Pursuant to the 

contract, sale of shares will take place by restoration of the 

companies’ 

technical reserves and the ownership of the insurance companies 

will be 

transferred on August 31, 1999.

 

The Insurance Inspectorate has seen and approved the contract 

concluded 

between AS AB Kindlustuse Grupp and Pacific Overseas. Pacific 

Overseas has 

been investigating the Baltic insurance and finance markets for the 

past 

two years; undersigning of the contract with AS AB Kindlustuse 

Grupp was 

preceded by half-year long negotiations between the companies. 

Pacific 

Overseas is a holding company, which has holdings and operates 

actively in 

the following business areas in the South-American countries: 

commercial 

and investment banking, telecommunications, mining and insurance.

 

Due to sale of holding to Pacific Overseas, a Venezuelan insurance 

company 

Nuevo Mundo Seguros (owned by the holding company) will become a 

strategic 

partner for ASA Kindlustus AS and AB Elukindlustuse AS. Formerly 

state-

owned, but now in private ownership Nuevo Mundo Seguros is one of 

the 

largest Venezuelan insurance companies. According to the 1998 

financial 

results, audited by PriceWaterhouseCoopers, the company collected 

1.1 

billion EEK in insurance premiums and its technical reserves exceed 

the 

level of 500 million EEK.  

 

 

Aleksandr Zaporozhtsev

ASA Kindlustus AS

Director of Financial Department

Tel. + 372 2 42 52 98