ERGO International AG is selling four more Group subsidiaries to the Euroins Insurance Group (EIG).
Image: ERGO Headquarter Düsseldorf, Germany. Photo: Courtesy of ERGO Group AG.
The new sale is for its Life and Non-Life subsidiaries in Romania and the Czech Republic and its Non-Life company in Belarus. Representatives of both companies have signed a purchase agreement. The sale is subject to regulatory approval, as is customary for transactions of this kind. The parties have agreed not to provide details of the purchase price.
EIG is one of the largest independent insurance groups operating in the markets of Central and South-Eastern Europe. In addition to international travel assistance, motor vehicle, property, accident, health and liability products, the EIG insurance portfolio also includes cargo, agricultural, financial, marine and aircraft insurance. The insurance company was founded in 2007 and has its headquarters in Sofia, Bulgaria. Euroins Insurance Group AD operates as a subsidiary of Eurohold Bulgaria AD.
Under the terms of the agreement, EIG will acquire all shares in the companies held by ERGO, including employment contracts, the client portfolio and IT systems. Premium income across all four ERGO companies totalled EUR 72 million (GWP) in 2017. The change of ownership from ERGO to EIG will have no effect on the obligations towards ERGO’s current clients.
“The acquisition of ERGO’s subsidiaries in Romania, the Czech Republic and Belarus perfectly suits our strategy to expand our presence in the CEE and CIS insurance markets, which provide huge potential for growth, and at the same time to diversify our product portfolio”, says Jeroen van Leeuwen, Chief Operating Officer of EIG. “With this acquisition we are building up our partnership with ERGO that gives us the opportunity not only to acquire portfolios of an industry leader but also gain valuable know-how and experience.”
“We are delighted that we have found a suitable buyer for all four ERGO subsidiaries in the CEE region in EIG”, says Alexander Ankel, Chief Operating Officer of ERGO International AG. “This agreement is a further important step that contributes to the optimisation of our international business, which we defined as a strategic goal in 2016.”
Source: Company Press Release