One of the leader insurance companies in Georgia, JSC ARDI Insurance, well known for its highest customer loyalty and satisfaction rate, is preparing for the next stage of its institutional transformation.
According to the strategic plan elaborated by the executive team and approved by the supervisory board and the shareholders alike, company will carry out strategic demerger (split) into two separate insurance entities: JSC ARDI Insurance – a multi profile risk carrier and service provider and JSC ARDI P&C – focusing on niche insurance products, such as financial risk insurance (suretyship) and mandatory insurance lines. During the initial stages of demerger, both companies will operate under the ARDI brand name.
Along with this spin-off, shareholder structure will change for JSC ARDI Insurance and Georgia Capital PLC, the biggest institutional investment company of Georgia, listed on London Stock Exchange (LSE) from 2018, will invest in the company and become the major shareholder. Total size of the investment is almost 30 million GEL, which is the record amount for Georgian insurance market.
Supervisory board members of JSC ARDI Insurance and Georgia Capital PLC noted, that given strategic development of an insurance company is the first of its kind for local market but is very common for international players and gives the company an opportunity to focus on its core values, ecosystem, and efficient growth.
“ARDI is the truly distinguished player on the market and characterized by its dynamic growth story. We are happy to welcome ARDI and its team as the new member of our family. Our investment will be directed to preserve and support the brand strength, efficiency, and growth for the years to come” – commented Irakli Gilauri, Chairman & CEO of Georgia Capital PLC.
“Decision elaborated by ARDI’s existing management and approved by shareholders is the western model of development that will be beneficial for the company’s future, and we are sure ARDI will adhere to all Georgian and European standards and regulations. Wish all the very best to New ARDI on the road to transformation” – emphasized in joint statement by Chairman of JSC ARDI Insurance, Armaz Tavadze and the Executive Deputy Chairman Wolfgang Michael Wand.
“This year ARDI celebrates its 14th anniversary. From the very beginning the company grew along with all ARDIANs who contributed enormously to its growth and success. During this interesting journey we noticed that our visions, desires, and aspirations for the company needed more solid ground, resources and better execution. We hope that this stage of transformation and new strategy will create better financial stability and corporate governance standards for the company and will be mutually beneficial for ARDI and ARDIANs, as well as for economy and society. Key takeaway is that ARDI must be even stronger as a standalone brand and entity. The size of the deal speaks for itself, that focus will be on the preservation of an entire ecosystem’s best features and supporting efficient future growth of the company. As for ARDIANs, we will be even more diligent and passionate in our quest for excellence” – commented Michael Japaridze, CEO of JSC ARDI Insurance.
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