KBC Group has reached an agreement with TALANX International AG for the sale of 100% of the shares of KBC's Polish insurance subsidiary TUiR WARTA S.A. for a total consideration of EUR 770 million, announced both insurance groups. According to the press release, the transaction is subject to the usual regulatory approvals and is expected to be completed in the second half of 2012.

To date, TALANX has been operating in Poland through two companies in motor, general liability, property and life insurance: HDI Asekuracja and HDI-Gerling Zycie. Additionally, in December last year TALANX and MEIJI YASUDA Life announced to take over the majority of EUROPA Group, based in Wroclaw. After closing of the transaction announced today, TALANX will be the second largest insurance group in Poland (note: according to a 2010 statistic published by the Polish Financial Supervision Authority).

"Through the acquisition of WARTA we are participating to a much greater extent in the further development of this highly dynamic insurance market. Furthermore, we are making a decisive step to reach our strategic growth target", said Torsten LEUE, Board Member of TALANX AG and CEO of the Management Board of TALANX International AG.

After closing of the subsequent transaction between TALANX International and MEIJI YASUDA, TALANX International AG will hold 70% and MEIJI YASUDA 30% of the WARTA shares.

"Our cooperation is a pure success story. The plan to enhance our weight by joining forces in entering new markets is fully working out", LEUE added.

"We are very pleased to welcome WARTA as a part of our group. We intend to ensure that WARTA clients continue to receive dedicated service from a highly-motivated staff working in a new and promising environment. We look forward to working with the existing management team of WARTA who we believe is doing an excellent job. We plan to invest further in the business, maintaining each of the subsidiaries and further improving the service and product offer to the clients", Herbert HAAS, CEO of TALANX Group comments.

"Taking the decision to divest WARTA was a very difficult one, especially in view of its profitable growth in recent years. We absolutely believe in the potential of WARTA, in the professionalism of its employees and agents and in the superior service they deliver to their customers. However, sometimes difficult decisions have to be taken. Today, we are pleased to announce that we have found a new, stable and strategic owner for WARTA. We are sure TALANX, one of the important insurance players in Europe, will be the ideal partner for WARTA and will help contribute to enhancing the already strong track record of the company, to the benefit of all its stakeholders", said Jan VANHEVEL, KBC Group CEO.

According to Jaroslaw PARKOT, WARTA CEO, "the acquisition of WARTA by TALANX is good news both for our company as well as for our clients and business partners. This transaction significantly strengthens WARTA's position on the Polish market. At the same time our company gains a professional and globally recognized shareholder whose experience, financial standing and support will allow the further development and strengthening of WARTA's market position."