Generali PPF linked with VTB on Russian insurance venture

Generali PPF Holding is in negotiations with Russian state-controlled bank VTB on establishing new insurance company.

VTB is Russia's second-largest retail bank in terms of authorized capital and assets.

Citing an anonymous source involved in the negotiations, Russian daily Vedomosti reported that to create the new entity, VTB is ready to transfer Stolichnaya strakhovaya grupa while Generali PPF would transfer 51% of shares in Generali PPF Life Insurance and Generali PPF General obshchee strakhovanie.

While picking up the story Czech Position claimed the new firm is likely to start negoiations with Ingostrakh - one of Russia's largest insurance firms - majority owned by Basic Element, with the likely proposition an initial public offering. Generali PPF already holds an interest in the firm.

Generali managing director, Giovanni Perissinotto, was reportedly tasked to commence negotiations with VTB on the establishment of a joint insurance company by the Generali board of directors recently, though specific conditions are not yet being discussed.

"We are discussing to create a venture to distribute Generali's products in the country," Mr Perissinotto told reporters from Bloomberg. "We would be happy to have a 51% stake in the venture." Mr Perissinotto is understood to have mentioned the involvement of Ingosstrakh but without giving an defiite details.

While VTB CEO Andrey Kostin told Reuters Insider TV that the bank would be interested in purchasing a "sizeable" holding in Generali.

 Earlier this year, Generali bought a 1% stake in VTB for around EUR300m.