Russia: ERGO to sell its life unit to ROSGOSSTRAKH

ROSGOSSTRAKH, one of the largest Russian non-life insurers is set to buy the local life insurance unit of German reinsurer MUNICH Re - ERGO Life, in a move to re-enter the life insurance segment.

Representatives of both parties have signed a purchase agreement, the sale being subject to regulatory approvals. The parties have agreed not to disclose details of the purchase price.

Under the agreement, ROSGOSSTRAKH becomes the owner of 100% of ERGO Life's shares and it will take over the whole company, including staff, client portfolio, and IT-systems. The change in ownership of ERGO Life Russia will not affect in any way obligations to current clients of ERGO.

"Based on our 2021 Strategy, we decided earlier this year to re-enter the life insurance market as quickly as possible," said Nikolaus FREI, CEO of ROSGOSSTRAKH.

"The purchase of ERGO Life enables us to accelerate our development and provide products to millions of our Russian clients through the OTKRITIE Group bank and through our own distribution channels."

"With ROSGOSSTRAKH, we have found a suitable investor with an impressive, long-standing history in the Russian insurance market," asserts Alexander ANKEL, the Chief Operating Officer of ERGO International AG.

"Our ERGO life business in Russia is a perfect match for ROSGOSSTRAKH, in line with their new business strategy to return to the life insurance market. For us, the agreement is another logical step to further drive our international business optimization strategy."

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