Italian insurer GENERALI announced signing an agreement to take over the entire life, non-life and composite insurance portfolios of three entities of ERGO International AG in Hungary and Slovakia. The sale is subject to certain regulatory and anti-trust approvals, as is customary for transactions of this kind. The parties have agreed not to provide details of the purchase price and other terms.
Premium income across all three ERGO entities totalled EUR 20.6 million (GWP) in 2017. The change in ownership of the portfolios from ERGO to GENERALI will have no effect on obligations towards ERGO's current clients.
It is worth noting that in the last few months, German Group ERGO left five other CEE markets by selling its operations to EUROHOLD (in the Czech Republic, Romania and Belarus), SAVA (in Croatia), ROSGOSSTRAKH and RESO GARANTIA (in Russia).
On the other hand, in the case of GENERALI, CEE markets seem to be a priority, the Italian group is expanding its activity by acquiring Adriatic Slovenica (Slovenia), CONCORDIA companies (Poland) and opening a Representative Office in Moscow.
"The projected acquisition of life, non-life and composite portfolios in Hungary and Slovakia is another step forward to our successful journey of growth and investment into Central and Eastern Europe and fully aligned with our Group's strategy to further reinforce our leading position in Europe, in particular in the CEE region. It will enable us to utilize cross-selling opportunities through the customer base as well as to reach a broader base of clients. We are convinced that every client of ERGO will benefit from our high-level expertise and extensive offer of products and services," said Luciano CIRINA, Austria, CEE & Russia Regional Officer and CEO of GENERALI CEE Holding.
"The agreement clearly shows, that we consequently stick to our core strategy consolidating our international business alongside defined minimum requirements. We are headed in the right direction which gets us into an excellent starting position to give new and well-aimed impetus for sustainable growth in an international business context," underlined Alexander ANKEL, Chief Operating Officer of ERGO International AG.