Bulgaria-based Euroins Insurance Group AD (EIG), an 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.
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 finalised 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, totalled 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 optimisation of our international business, which we defined as a strategic goal in 2016”, says Alexander Ankel, Chief Operating Officer of ERGO International AG.