Global reinsurer Munich Re’s primary insurance arm, ERGO Group, has completed the previously announced acquisition of ADB Gjensidige, the former Lithuanian subsidiary of Norwegian non-life insurer Gjensidige Forsikring ASA, including its branches in Estonia and Latvia.
The announcement was made by ERGO International AG, the segment managing the group’s international business portfolio. All conditions necessary for the completion of the transaction have been fulfilled according to schedule, including required regulatory approvals in Lithuania, Latvia, and Estonia.
Through this transaction, ERGO expands its footprint across the region, strengthening its local market position. This acquisition also propels ERGO as the third-largest regional insurer based on premium volume, building on ADB Gjensidige’s strengths as the sixth-largest non-life insurer locally.
In the transition phase, ADB Gjensidige will be integrated into ERGO through a merger of the pair. This will allow ERGO to expand its sales network, becoming the second largest in the region.
ERGO will establish and brand itself as the leading insurer in the Baltics by operating under a single brand across all three countries and lines of business, explains the firm.
The merger process of the pair in the Baltics will commence immediately and proceed gradually until the end of the year. During this period, both companies will continue to operate as separate entities, and ADB Gjensidige will retain its brand before being integrated into ERGO.
Theo Kokkalas, Chair, Board of Management, ERGO International AG and Chief Operating Officer of ERGO International, commented, “The successful conclusion of this acquisition marks a significant step in the ambition to further develop our diversified, robust business and position ourselves sustainably among the leading insurance companies in all our markets.
“With this strategic move, we strengthen our position in the region for the long term, enabling us to grasp attractive growth opportunities in a very dynamic business environment.”
Ursula Clara Deschka, Chief Executive Officer and Chair, Board of Management of ERGO in the Baltic States, added, “As we bring together the teams, skills and expertise of ERGO and ADB Gjensidige, we are ideally positioned to leverage our assets as a truly leading multiline insurance company in the Baltics.
“This new setup will bring us even closer to clients and partners in Lithuania, Latvia, and Estonia as we strive to provide tailored, comprehensive solutions and significant added value across our products and services.”
ADB Gjensidige is a major non-life insurer in the Baltics, mainly focusing on Motor, Property and Accident & Health insurance covers, distributed to commercial and private customers. In 2024, the company generated insurance revenue of €158.9 million.
