Talanx strengthens its business in the core market of Poland with ten-year cooperation between Europa Group, a subsidiary of HDI International AG, and Bank Millennium through bancassurance agreement.
According to the announcement, as part of the transaction Europa Group is acquiring 80% of the shares in a company owned by the bank for the sale of life protection and non-motor products.
By entering into this cooperation Talanx is further strengthening its position in its core market Poland. The partnership with Bank Millennium will also help it to realise its strategic objectives by growing further in life protection and non-motor business. The group will also grow its footprint in the bancassurance sector and accelerate its digitalisation.
According to the announcement, the ultimate consideration is still subject to certain closing adjustments and expected to amount to approximately €104 million.
A (performance-based) review mechanism to reflect potential outperformance and underperformance in respect of jointly targeted business goals has been agreed as part of the overall partnership.
Talanx intends to finance the transaction from existing funds, which is subject to approval by the relevant supervisory authorities.
The partnership is expected to launch in the second half of 2023, with the acquisition expected to close in the first half of 2023.
“We are very pleased to strengthen our cooperation with Bank Millennium and to extend and solidify our existing relationships through this joint initiative. The transaction solidifies our strategic position of Europa Group in Poland,” commented Dr Wilm Langenbach, the member of the Board of Management of Talanx AG with responsibility for the Retail International division and Chief Executive Officer of HDI International AG.
He added: “We are convinced that the partnership will contribute to further profitable growth for the Retail International division as a whole and our Polish operations in particular.”
The partnership will enable Europa Group to grow its bancassurance business as it expands the product and channel offer to customers of Bank Millennium.
Artur Maliszewski, president of the management board of Europa Group, said: “Expanding our relationship into a strategic and long-term cooperation with Bank Millennium creates a strong foundation for the stability and successful development of Europa Group companies.
“We significantly increase the scale of operations on the Polish market and build a solid base for profitable business growth. The strengthening of our financial condition and the tightening of the business relation with Bank Millennium will translate into the enhancement of the insurance offer for the bank’s customers, so that it provides the highest possible value and protection of life and property in today’s turbulent times.”
Bank Millennium, a subsidiary of the Portuguese Banco Comercial Portugues, was established in 1989 and employs over 6,900 people. Measured by total assets, Bank Millennium is the seventh-largest bank in Poland.
Insurance products are sold through a network of 635 branches and through internet and mobile bank platforms. In 2022 its total assets amounted to around €24 billion.
HDI International AG, responsible for the international retail and SME business within Talanx Group, has been represented in the Polish market by Europa Group since 2012.
In 2021 it generated a gross premium volume of altogether €138 million with market shares of 1.7% in life and 0.6% in non-life business. After Q3 2022 Europa Group’s share by gross written premiums in the bancassurance sector was estimated at 8% in life and 6% in non-life segment.
HDI International is additionally active on the Polish market with Warta, the second-largest insurer in Poland.
