GJENSIDIGE Forsikring ASA finalized the acquisition of PZU Lietuva
The acquisition price was adjusted on closing from the previously announced EUR 54 million to approximately EUR 66 million due to a corresponding increase in net asset value (NAV) in PZU Lietuva. Consequently, the capital effect is unchanged from what was previously announced. GJENSIDIGE's third quarter 2015 balance sheet will reflect the completed transaction, while profit contribution from the transaction will materialise in the fourth quarter 2015.
According to the news agency LETA, the acquisition marks the consistent strategy of GJENSIDIGE to develop activities in the Nordic and Baltic region. After the acquisition GJENSIDIGE has become one of the largest non-life insurance companies in the Baltics. Thus, the company's market share in the Baltics has increased from around 7 to 12 %, and in Lithuania - from 7 to 19 %.
Based on the agreement, PZU Lietuva trade mark will be replaced within six months after the conclusion of the transaction.
PZU Lietuva is the third largest insurance company in Lithuania, taking 13.8 % of the insurance market share in the country. In 2014 the company signed insurance contributions totalling at EUR 50 mln.. The company employs 560 people.