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Munich Re-owned ERGO Group AG – which is made up of ERGO Deutschland, ERGO International, and ERGO Digital Ventures – has sold four ERGO International subsidiaries to the Euroins Insurance Group (EIG) for an undisclosed amount.
Subject to regulatory approval, the sale involves ERGO’s life and non-life subsidiaries in Romania and the Czech Republic as well as its non-life company in Belarus. In 2017 they had a combined gross written premium of €72 million.
The purchase agreement will see EIG acquire all shares in the four firms held by ERGO – these include employment contracts, the client portfolio, and IT systems. The Munich Re unit has offered assurances that the change of ownership will not impact obligations towards ERGO’s current clients.
“We are delighted that we have found a suitable buyer for all four ERGO subsidiaries in the CEE (Central and Eastern Europe) region in EIG,” commented 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.”
Represented in more than 30 countries, ERGO has been re-assessing its international business activities in terms of strategic relevance, position, and market appeal.
Bulgaria-headquartered EIG, meanwhile, is one of the largest independent insurance groups operating in the Central and Southeastern Europe markets. It specialises in international travel assistance, motor vehicle, property, accident, health, and liability products as well as cargo, agricultural, financial, marine, and aircraft insurance.
“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 (Commonwealth of Independent States) insurance markets, which provide huge potential for growth, and at the same time to diversify our product portfolio,” noted EIG chief operating officer Jeroen van Leeuwen.
“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.”
