Germany's Euler Hermes Versicherungsbeteiligungen, one of the leading credit insurance companies in Europe, is set raise its shareholding in Lietuvos Draudimo Kredito Draudimas (Lithuanian Insurance's Credit Insurance) to 51 per cent.
Lietuvos Draudimas, the country's biggest insurance group, will sell 2 per cent of shares to Hermes, reducing its stake in Lietuvos Draudimo Kredito Draudimas to 49 per cent. The Lithuanian State Insurance Supervisory Authority gave the go-ahead for the deal yesterday.
Vidmantas Maksimaitis, director of Lietuvos Draudimas' Legal Department, said 2 per cent of shares in Lietuvos Draudimo Kredito Draudimas was being sold on the basis of a 2000 agreement with Hermes.
Lietuvos Draudimo Kredito Draudimas posted a net profit of 1.705 million litas for 2002, a 37.6 per cent increase over the previous year. The company had assets of 18.402 million litas as of late 2002.