It is worth noting that in the last few months, German Group ERGO left seven other CEE-SEE markets by selling its operations to GENERALI (Hungary and Slovakia), EUROHOLD (in the Czech Republic, Romania and Belarus), SAVA (in Croatia), ROSGOSSTRAKH and RESO GARANTIA (in Russia).
Sven FOKKEMA, CEO of HDI International AG and a Member of the Board of Management of TALANX AG, said:
"This acquisition boosts HDI Sigorta from number 11 among insurers in Turkey to the number seven spot. We have thus moved a major step closer to achieving our strategic goal of ranking among the top 5 insurers in each of our core markets."
The parties have agreed not to disclose the purchase price. The transaction is still subject to approval by the relevant supervisory authorities, which is anticipated for the third quarter of 2019.
As a result of the acquisition the premium volume generated by the division in Turkey will increase by EUR 139 million to more than EUR 400 million and the market share will rise to more than 5%.
In 2018 ERGO Sigorta reported GWP worth of EUR 139 million with a market share of 1.6%. The company employs around 320 staff and has a distribution network comprised of 1,500 intermediaries.
The TALANX subsidiary HDI Sigorta has been operating in the Turkish property/casualty insurance market since 2006. The company offers insurance services through roughly 420 employees, nine regional offices and more than 2,000 insurance brokers and agents as well as ten bank partners. The gross written premium volume booked by HDI Sigorta in 2018 amounted to EUR 278 million, equivalent to a market share of roughly 3.5%. With the acquisition of the ERGO subsidiary this market share is now expected to grow to 5.1%.
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