Bergalof would not disclose how much the EBRD would acquire and at what price, but a news conference held by the reinsurer in Ljubljana heard the bank had expressed interest in paying in EUR 7.5-10m.

Bergalof said that the decision to enter ownership of Pozavarovcalnica Sava proved the bank was not withdrawing from Slovenia, but would strengthen its presence.

Pozavarovalnica Sava presented details of the share issue today after it formally launched the procedure on Thursday in a bid to raise EUR 55m needed to finalise the acquisition of Zavarovalnica Maribor, the third largest insurer in the country.

Chairman Zvonko Ivanušič told reporters today that EUR 50m would be used to finance the acquisition of a 39.21% stake of the Maribor-based insurer that is currently held by the state-owned SOD fund, and the remaining EUR 5m to secure capital adequacy.

Pozavarovalnica Sava will issue 7,857,143 new shares. Existing shareholders will have a pre-emption right, but investors will also be sought in the EU, US and Croatia.

The final share price will be determined based on demand by institutionalised investors and will range between EUR 7 and EUR 9.

Žiga Gregorinčič of brokerage Alta said the EBRD, which will be given a priority as an invited investor in the third round of capital increase, had expressed interest in acquiring a share totalling EUR 7.5 to EUR 10m.

The reninsurer already owns insurance company Tilia and the takeover of Zavarovalnica Maribor will make the group Sava Re the second biggest insurance group in SE Europe, according to Ivanušič.

Sava Re generated a consolidated premium of EUR 271m last year. Had Zavarovalnica Maribor been included in its balance sheets, the consolidated premium would have amounted to EUR 494m. Assets would have increased from EUR 641m to EUR 1.34bn and capital from EUR 171m to EUR 231m.