German insurance group Talanx International has agreed to acquire Belgium-based KBC Group's Polish insurance unit TUiR Warta (Towarzystwo Ubezpieczen i Reasekuracji Warta) for EUR770m.

Warta has 1.5 million customers in Poland and an 8.1% share of the market.

KBC said the sale of Warta will boost its net profit by EUR300m and will increase its core tier-1 ratio by slightly less than 0.7%.

According to a 2010 statistic published by the Polish Financial Supervision Authority the acquisition of Warta will make Talanx the second largest insurance group in Poland.

In December 2011, Talanx and Japan-based Meiji Yasuda Life Insurance Company jointly acquired a majority stake in another Polish insurer, TU Europa.

Talanx said that upon completion of the transaction, its Japanese partner Meiji Yasuda will take over 30% of the Warta shares.

The transaction, which is subject to the regulatory approvals, is expected to be completed in the second half of 2012.