Millenium Insurance Broker takes over the business of Vector Broker de Asigurare şi Reasigurare

Millenium Insurance Broker (MIB) has acquired the Vector Broker de Asigurare şi Reasigurare (VBK) business, namely the entire portfolio of ongoing insurance policies, together with the transfer of secondary intermediaries - brokerage assistants under contract with VBK and who will sign with Millenium, according to a report from the issuer published yesterday on the Bucharest Stock Exchange (BVB) website.

The acquisition was completed at the end of last month, subject to the signing by Vector Broker de Asigurare şi Reasigurare and Millenium Insurance Broker, within 25 days at the latest, of a Certificate of Completion of the business transfer.

The transaction value was 0.9 million euros, according to the valuation made by Millenium, the money to be paid in four installments. The acquisition will be financed from Millenium's own sources, the company being capitalized as a result of the capital increase carried out prior to the listing on the Bucharest Stock Exchange.

The purpose of the transaction is to consolidate MIB's insurance brokerage business, making the company bigger and stronger, thus being able to better represent its clients, according to the information.

"The MIB team has relevant experience and expertise in running the insurance brokerage business, and the integration will be done naturally, by migrating at least 90% of VBK's brokerage assistants to MIB, so that the insured will be managed by the same secondary intermediaries they are used to and who have the respective clients in their portfolio, and the insurance policies whose management is transferred from VBK to MIB will continue to be managed by the same insurance companies," the BVB report states.

Vector Insurance and Reinsurance Broker had revenues of 9.8 million lei in 2023, down 11.5% from the previous year, and a loss of 0.72 million lei, compared to a net profit of 0.13 million lei in 2022, according to Risco.ro data.

Millenium Insurance Broker reported a net turnover of 72.7 million lei for the past year, 32% higher than last year and a net profit of almost 2.5 million lei, 8.5% lower than the result obtained in 2023.

The company was listed on the AeRO Market of the Bucharest Stock Exchange in February 2023, with a market capitalization of about 30 million lei at the end of last week.