Sofia, 7th March 2019 - Bulgaria-based Euroins Insurance Group AD (EIG), a leading insurance group in the CEE/SEE/CIS region, owned by Eurohold Bulgaria, has agreed to take over four insurance companies in three European countries - Romania, the Czech Republic and Belarus. All the companies to be acquired are subsidiaries of Germany-based ERGO, one of the major insurance groups in Europe and part of Munich Re, one of the world's leading reinsurers and risk carriers.
The new acquisitions - facts & figures
ЕIG will acquire ERGO’s life and non-life subsidiaries in Romania and the Czech Republic and a non-life company in Belarus. The two sides have already signed purchase agreements and the deal is expected to be finalized after obtaining regulatory approvals.
Under the terms of the agreement, 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 acquired by EIG, totaled EUR 72 million (GWP) in 2017.
Less than a year ago EIG bought ERV Ukraine, the travel insurance business of ERGO in Ukraine. The two sides agreed on cooperation including the transfer of know-how and the opportunity to offer common branded products.
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, the Czech Republic and Belarus.
„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 markets, which provide huge potential for growth, and at the same time to diversify our product portfolio. EIG, in turn, will bring in its new subsidiaries the best practices from the operations across its own network and will provide its new clients with a wide range of reliable insurance products that will contribute to the further development of the local markets”, says Jeroen van Leeuwen, Chief Operating Officer of EIG. “With this acquisition we are also 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”, EIG’s Chief Operating Officer added.
“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 optimization of our international business, which we defined as a strategic goal in 2016”, says Alexander Ankel, Chief Operating Officer of ERGO International AG.
EIG’s M&A track record
In the last couple of years EIG acquired directly or through its subsidiaries: Germany-based Talanx Group’s subsidiaries in Bulgaria and Ukraine, operating under HDI brand; Dutch insurer Achmea’s insurance business in Bulgaria, known under Interamerican brand (including its life insurance operations); Australian group QBE’s operations in Romania and Bulgaria; the non-life insurance portfolio of ATE Insurance Romania, a subsidiary of Greece’s Piraeus Bank; IC Group, one of the leading insurers in Georgia; ERV Ukraine, the travel insurance business of Germany-based ERGO, part of Munich-Re, one of the major reinsurance groups on the global market; and a significant stake in ООО RSO Euroins, a Russian insurer.
With reference to its development strategy to become one of the leading insurance groups in the CEE/SEE/CIS region, EIG plans to remain focused on expanding its presence in this region through acquisitions and organic growth while diversifying its product portfolio and distribution channels and maintaining high liquid and capital position.