Support The Moscow Times!

Now is the time to support independent reporting from Russia!

Contribute Today

VTB Might Buy Ingosstrakh Stake

VTB is in negotiations to buy out the 40 percent of Ingosstrakh held by Czech investor Petr Kelner's PPF private-equity firm and Italian insurance giant Generali, according to a source close to one of the Russian insurance company's shareholders.

This was confirmed by managers at VTB and PPF. A 40 percent stake in the insurance company could be worth $1 billion, said Pavel Samiyev, deputy general director of Expert RA.

Ingosstrakh is controlled by billionaire Oleg Deripaska's Basic Element, which has been involved in a power struggle over the asset with PPF since they became partners five years ago, following the sale by Alexander Mamut of his stake in the insurer to PPF for about $750 million.

If the deal goes through VTB might seek to merge its insurance assets with Ingosstrakh, a manager at VTB said.

Industry players speculate that it will be easier for VTB to find a common language with Generali than with PPF. The Italian insurer bought $300 million worth of VTB shares last year and had discussions about making an insurance joint venture with the bank.

Read more