ERGO, the primary insurance arm of reinsurance giant Munich Re, has expanded its property and casualty (P&C) services in the Chinese market via a strategic investment in Taishan Property & Casualty Insurance Co., Ltd.
Once completed, the deal will see ERGO take 24.9% equity interests of Taishan Insurance through its subsidiary, ERGO Versicherung AG.
Incorporated in 2011, Taishan is a Shandong-based nationwide P&C insurer that provides products, services and solutions to customers throughout China.
In addition to deepening ERGO’s presence in China, the investment is expected to enhance Taishan’s market offering as the country’s financial sector continues to open up.
“In our global portfolio, China holds a central role,” said Markus Rieß, Chief Executive Officer and Chairman of the Board of Management of ERGO Group.
“Taishan Insurance is a dynamic and ambitious insurance company in the Chinese P&C market, which drives its business with great competence and determination. We are looking forward to building a strong partnership together and to bundling our strengths in this important market.”
Jürgen Schmitz, CEO of ERGO China, also stated: “ERGO Group’s strategic investment into Taishan Insurance is a strong entry point into China’s P&C market that also complements our existing Life and Health businesses in China.”
“Through this investment, ERGO Group has the opportunity to share our insurance expertise and global resources with Taishan Insurance and to boost our innovative capabilities and competitiveness in the Chinese market.”
ERGO has been involved in the Chinese re/insurance market for nearly two decades now, and launched its travel assistance and health TPA service company in the country as early as 2005.
In 2013, it established ERGO China Life, its life insurance Joint Venture with Shandong State-owned Asset Investment Holdings Co, Ltd., and in 2019 it set up its regional headquarters, ERGO China.
Zhang Bin, Director of Shandong State-owned Assets Supervision and Administration Commission commented on the announcement: “The strategic investment by ERGO Group will maximize resources from both sides to further drive Taishan’s development in the areas of competitiveness, innovation and risk control, and contribute to the high-quality economic development of Shandong Province.”
“We are pleased to have ERGO Group become our strategic shareholder. We look forward to working closely with ERGO Group to explore new business opportunities and introduce new business models and technologies to our customers,” added Zhu Huajian, Chairman of Taishan Insurance.