RUSSIA: RESO-Garantia acquires the Russian non-life insurer of ERGO Group

14 February 2019 —
RESO-Garantia acquires 100% of ERGO (a subsidiary non-life insurer of ERGO Group AG in Russia) from ERGO International AG, as ASN wrote.

The sale contract between the companies has been already signed. This transaction is subject to approval by regulators. According to RESO-Garantia, this deal corresponds to the company's development strategy in key segments of insurance retail business, and for ERGO Group AG the sale of its subsidiary is within the international consolidation strategy. As the CEO of RESO-Garantia, Dmitry RAKOVSCHIK explained, "the deal is a part of RESO-Garantia's strategy, aimed at development of the high profitable motor insurance in its portfolio and obtaining the maximum synergy effect".

"RESO-Garantia for us is an investor with impressive and proven expertise on the Russian insurance market. By entering into this agreement, we follow our international business strategy, which focuses on those markets, where we have strong positions", said Alexander ANKEL, CEO of ERGO International AG.

In 2017 ERGO (Russia) generated GWP in the amount of RUB 6.8 billion and its paid claims reached RUB 3.2 billion. For 9 months in 2018 the insurer's GWP amounted to about RUB 4.9 billion and paid claims - RUB 2.6 billion. GWP of RESO-Garantia for 9 months in 2018 amounted to RUB 91.5 billion, and paid claims - RUB 45.1 billion. In terms of GWP RESO-Garantia ranks 5th on the Russian market.

*1 EUR = 68.4483 RUB (September 30th, 2017)

1 EUR = 76.2294 RUB (September 30th, 2018)

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