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Sogaz is a leading Russian Insurance and Reinsurance company which has this year become no 1 in Russia with (in 2013) approaching 10% of the market. It has grown impressively since it was demerged out of Gazprom, for which it had been an in-house insurer since founding in 1993. Its growth has been through a combination of organic growth and the acquisition of smaller rivals. 


Sanctions and Sogaz?
Published: Jan 14 2015

Press speculation has grown around a possible tightening of the sanctions regime by the newly elected Republican-controlled Congress, since the Republicans are viewed as more aggressive regarding Russia. Sanctions aim to persuade President Putin to alter his policy in Ukraine. 
Sogaz, a Russian insurance company, is viewed as a possible target of a tighter sanctions regime since two of its shareholders are on the list of sanctioned companies. It has sought to avoid this, first by reducing Bank Rossiya's stake below 50% and more recently by Gazprom buying more of it so that non-sanctioned companies now own a majority of the company.  
The key issue for Sogaz is Reinsurance: it has net assets of R50billion ($1.5bn at end 2013 exchange rates, just under $1bn today) but insures risks of trillions of roubles each. It buys reinsurance from Western reinsurers; without them no Russian insurer could underwrite vast prestige risks like satellites or the property risk on Rusatom's nuclear power stations. 
We surmise that Sogaz would be inconvenienced, rather than crippled, by sanctions: but this would be less than catastrophic and the impact of the fall in the oil price, triggering a slump in the Rouble and a recession in Russia, combined with already deteriorating conditions in the Russian insurance market, are already a greater problem than sanctions could be.


Foreign buyers gorging on UK stocks

Document can be downloaded here: UK plc ‘going for a song’

Being a shareholder in a company that receives a juicy takeover offer is a marvellous feeling. Something that many fortunate investors have experienced over the past 3 years. Thanks to a spate of M&A bids by deep pocketed overseas buyers – partly triggered by the June 2016 Brexit result, which sent the £ tumbling and adversely affected the FTSE.

Consequently today, given this trend is unlikely to end anytime soon, we’ve highlighted 30 possible acquisition ideas in the attached research paper. Spilt equally between large and smallcap stocks – covering a broad selection of industries.

What’s more we believe most of these businesses are underpinned by strong fundamentals and substantial upside in the event of predatory interest.

According to Factset Mergerstat/BVR, the average bid premium paid for such deals between 2004-14 was 30% – with the figure trending upwards since the global financial crisis.

Happy investing. Published 27th August 2019