KBC PUTS BULGARIA'S DZI UP FOR SALE, CLAIM REPORTS

Belgian bancassurer KBC has put Bulgarian subsidiary DZI up for sale, according to local reports. Last month KBC announced the sale of Polish insurer Warta to German insurance holding company Talanx for €770m. The reports claimed that Talanx was also considering the acquisition of DZI, with Netherlands-based Achmea also interested. KBC owns more than 95% of DZI, having raised its stake from 90.35% last year. That would give KBC the right to delist the shares from the Bulgarian exchange. KBC paid about €185m for a 70% stake in DZI in August 2007. DZI, sold off by the state in 2002, was until 2005 theoretically majority owned by banker Emil Kyulev, who was shot dead in his car in October 2005 (IIN 24, October 27 2005) in a "highly coordinated attack. However, Contract Sofia, the only approved bidder for the government's stake in DZI, was mainly owned by Dennis Overseas Ltd, claimed by Mr Kyulev as a private company of his, although it was never entirely clear where Mr Kyulev accumulated the wealth to fund his purchases. KBC bought the stake from Vessela Kyuleva, Mr Kyulev's widow. Meanwhile, rating agency Fitch has downgraded KBC Group to 'A-' from 'A', mainly because of the downgrade of Belgium last week. KBC Insurance and KBC Group Re's IFS ratings are now 'A-', down from 'A', with a stable outlook.