Ulaanbaatar, Mongolia - 29th April 2025
Ard Financial Group has initiated structural changes three years ago to streamline its operations, enhance profitability, augment investment returns, and implement prudent management practices. A significant transaction undertaken within this framework involves the consolidation of all insurance service-related businesses into a single entity, thereby establishing Mongolia’s inaugural public company specializing in insurance services, a goal that is presently being achieved. To elaborate, Ard Financial Group has reached a consensus with the stakeholders to transfer 50 percent of the shares of Ard Insurance, held by its direct and affiliated companies, to Undorhaan for a total consideration of MNT 20 billion. The parties have formalised this agreement, marking a historic decision for the insurance industry.
Furthermore, it is pertinent to note that last year, Ard Pension Fund was fully transferred under Undorhaan JSC. The agreement made today allows Undorhaan to emerge as a holding company that incorporates the foremost general insurance and private pension funds in Mongolia. In the foreseeable future, Undorhaan will not only enhance the operations of these companies independently but will also strive to integrate additional insurance businesses under its purview and develop new ventures, including life insurance services, with a focus on increasing returns on shareholders' equity.
By concluding this transaction, Ard Insurance, a frontrunner in its sector and a Tier-I company on the Mongolian Stock Exchange, will be well-positioned not only to sustain its steady growth but also to reinforce its market presence and deliver innovative products and services to its clientele in a prompt and reliable manner. Moreover, this development will facilitate Ard Insurance's ability to operate as an institutional investor within the capital market, in conjunction with Ard Pension Fund, thereby establishing a substantial presence in the capital market that transcends the limitations of the insurance sector.
