German insurance giant Allianz has finalized the acquisition of Progress-Garant, further expanding and strengthening its presence in the rapidly growing Russian insurance market.
As part of the transaction, Allianz purchased all shares in the Russian insurer from the management of the company. Both firms have agreed not to disclose further details of the transaction.
Progress-Garant is engaged in the property and casualty insurance business in Russia and, according to a press release, ranks among the top 20 Russian insurers, with gross written premiums of more than $120 million in 2006. The purchase of Progress-Garant will, therefore, further strengthen Allianz’ position as a leading player in the Russian insurance industry.
Following the recent acquisition of a majority shareholding in Rosno, the acquisition of Progress-Garant will allow Allianz to participate even more significantly in expanding its presence in the local corporate clients market and the market for personal lines – especially in the growing health, motor and property insurance segments, commented Hannes Chopra, representative of Allianz SE in Russia and chairman of the board of management of Rosno.
With the additional sales network of Progress-Garant in the main metropolitan areas across the country, we move closer to our clients. They will particularly benefit from the possibility to obtain access to solutions not only in property and casualty insurance, but also in the field of old-age provision, Mr Chopra added.
The acquisition is also in line with Allianz’ current strategy to win new customers in the major markets of central and eastern Europe and the CIS region.