EUROINS acquires ERGO subsidiaries in Czech Republic, Romania and Belarus
EIG will acquire all shares in the companies held by ERGO, including employment contracts, the client portfolio and IT systems. Premium income across all four ERGO companies that are being bought totaled EUR 72 million (GWP) in 2017.
Both parties have decided not to provide any details about the purchase price.
"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. 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," said Jeroen van LEEUWEN, Chief Operating Officer of EIG.
"We are delighted that we have found a suitable buyer for all four ERGO subsidiaries in the CEE region in EIG. 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," said Alexander Ankel, Chief Operating Officer of ERGO International AG
Last year EIG bought ERV Ukraine, the travel insurance business of Germany-based ERGO. After the completion of the current deal EIG will operate in eleven European countries, including its own subsidiaries in seven of them - Bulgaria, Romania, North Macedonia, Ukraine, Georgia, Czech Republic and Belarus.