The insurance company Ceska pojistovna, a unit of the Czech financial group PPF, is mulling issuing its shares on the Prague Stock Exchange, Hospodarske noviny reported. Ceska pojistovna representatives declined to disclose further details.
PPF wants to separate Czech and foreign hire-purchase companies Home Credit from Ceska pojistovna to simplify the asset structure and make it more attractive to investors. Part of the planned separation of hire-purchase companies from Ceska pojistovna will be a transfer of Ceska’s liabilities worth CZK6.5bn (US$283.8 million) to Home Credit, which will also take over Ceska’s capital, the amount of which is yet to be determined by a court expert.
PPF is getting rid of some units completely: In 2005 it sold CP Leasing and it is currently in talks with five bidders on the sale of eBanka. If the bank is sold, the Ceska pojistovna group will only include Penzijni fond Ceske pojistovny, CP Invest and provider of private health insurance CP Zdravi, which are linked directly to the insurance business. In 2005, Ceska pojistovna had a market share of 36% and estimated value at some CZK63.5 billion in mid-2005. Its year-over-year net profit grew by 10% to a preliminary CZK4.6 billion.