The European Commission has approved a strategic investment by ERGO, the primary insurance arm of reinsurer Munich Re, in Shandong-based nationwide property and casualty (P&C) insurer, Taishan Property & Casualty Insurance Co., Ltd.
As we wrote in early June, ERGO announced plans to bolster its P&C services in the Chinese market through the acquisition of a 24.9% equity interest in Taishan Insurance through its subsidiary, ERGO Versicherung AG.
The acquisition of the Chinese insurer by ERGO, together with China-based Shandong Hi-Speed Group Corporation (SDHS), has now been approved at the European Union (EU) level.
According to an announcement, the European Commission came to the conclusion that the proposed acquisition would not result in any competition concerns, as the insurer has no actual or foreseen activities within the European Economic Area (EEA).
Alongside the benefits for ERGO, the investment is also expected to enhance Taishan’s market offering as China’s financial sector continues to open up.
ERGO has participated in the Chinese insurance and reinsurance markets for almost 20 years, and launched its travel assistance and health TPA service firm in the country in 2005.
Later, in 2013, ERGO China Life, its life insurance Joint Venture with Shandong State-owned Asset Investment Holdings Co, Ltd. was established, and then in 2019 the firm launched its regional headquarters, ERGO China.