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, the company will carry out a 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, the shareholder structure will change for JSC ARDI Insurance and Georgia Capital PLC, the biggest institutional investment company of Georgia, listed on the London Stock Exchange (LSE) since 2018, will invest in the company and become the major shareholder. Total size of the investment is almost 30 million GEL, which is a record amount for the Georgian insurance market.
Supervisory board members of JSC ARDI Insurance and Georgia Capital PLC noted that the strategic development of the insurance company is the first of its kind for a local market, but is very common for international players, and will give the company an opportunity to focus on its core values, ecosystem, and efficient growth.
“ARDI is a truly distinguished player on the market, characterized by a dynamic growth story. We are happy to welcome ARDI and its team as a 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” said Irakli Gilauri, Chairman & CEO of Georgia Capital PLC.
“The decision taken by ARDI’s existing management and approved by shareholders is a 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. We wish all the very best to New ARDI on the road to transformation,” said Chairman of JSC ARDI Insurance, Armaz Tavadze, and the Executive Deputy Chairman Wolfgang Michael Wand, in a joint statement
“This year ARDI celebrates its 14th anniversary,” noted Michael Japaridze, CEO of JSC ARDI Insurance. “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.
“The 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.”
