London-based financial services investor EMF Capital Partners has invested in Russian insurance software company Virtu Systems, the first deal from its EMF New Europe Insurance Fund (NEIF).
The founders will retain a stake the company, whilst NEIF becomes Virtu’s largest shareholder.
Virtu is one of the most popular and widely used front-office systems in the Russian insurance market, used by insurers including domestic and international companies. The investment will allow the company to expand their team in order to respond to increasing demand. It will also allow it to create a new product range, with the aim of eventually entering international markets, the company said.
Virtu was founded in 2008 by a group of Russian IT entrepreneurs and is focused on providing online communications and data exchanges between insurers and their distribution channels. In Russia today, most insurance products are sold in paper form and communication between agents and insurance companies is slow and inefficient. Automating the insurance sales process is a significant cost saving and efficiency opportunity for the industry as a whole, said Peter Lovas, CEO of EMF Capital Partners.
Lovas said, “We are excited to be able to support a vibrant and dynamic Russian company such as Virtu. We see the IT sphere in the Russian insurance sector as a high growth segment which will enable the industry to improve its efficiency and reporting transparency which will ultimately translate into higher profitability’’.
NEIF targets investments in the insurance and insurance related sectors of non-EU Eastern Europe with a principal focus on Russia, Turkey and Ukraine.
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