ERGO International AG, a division of global reinsurer Munich Re, has announced that it plans to sell four more of its European insurance subsidiaries to Euroins Insurance Group (EIG).
Representatives of both parties have signed a purchase agreement relating to the sale of ERGO’s life and non-life subsidiaries in Romania and the Czech Republic, as well as its non-life company in Belarus.
The move forms part of ERGO’s international portfolio optimisation strategy, which has already seen it sell three of its legal insurance subsidiaries to Allianz in January, and sell its Russian non-life business to RESO-Garantia in February.
Under the terms of the latest agreement, EIG will acquire all shares in the companies held by ERGO, including employment contracts, the client portfolio and IT.
Premium income across all four companies totalled €72 million in 2017, ERGO said, adding that the change in ownership would not have any effect on its obligations to its current clients.
“We are delighted that we have found a suitable buyer for all four ERGO subsidiaries in the CEE region in EIG”, said 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,” he added.
Headquartered in Sofia, Bulgaria, EIG is one of the largest independent insurance groups operating in Central and South-Eastern Europe.
It operates as a subsidiary of Eurohold Bulgaria AD and has an insurance portfolio including international travel assistance, motor vehicle, property, accident, health and liability products, cargo, agricultural, financial, marine and aircraft.
“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”, said 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,” van Leeuwen continued.