GAZPROM TO SELL MINORITY HOLDING IN INSURANCE CAPTIVE

Russian gas producer Gazprom has set out plans to sell a 46% stake in its captive insurer SOGAZ to a strategic investor. A spokesperson for the firm told Russian business paper Vedomosti that SOGAZ wanted a major overseas insurer to buy the stake so that investment could be found to launch several new insurance programmes. SOGAZ’s current status as a wholly owned Gazprom captive had to date made it difficult for the insurer to raise funds for new projects, the spokesperson noted. The holding is expected to be sold only after Gazprom’s medical insurer Gazprommedstrakh has merged with SOGAZ. After the sale, however, Gazprom will continue to hold a majority stake in the insurance unit, which is currently engaged in increasing its capital from R135m to R2.14bn ahead of its takeover of Gazprommedstrakh. That merger will create the country’s 12th-largest insurer by premium income.