ERGO International AG, managing ERGO Group’s international business portfolio, announced the closing of the acquisition of ADB Gjensidige, the former Lithuanian subsidiary of Norwegian non-life insurer Gjensidige Forsikring ASA, including its branches in Estonia and Latvia.

According to the press release, through this transaction, ERGO expands its footprint across Lithuania, Latvia and Estonia, strengthening its local market position.

It is noted that the required regulatory approvals in Lithuania, Latvia and Estonia have been obtained according to schedule to complete the transaction. In the upcoming transition phase, ADB Gjensidige will be integrated into ERGO by way of merger of the two companies, laying the foundation for sustained profitable growth in the years ahead.

With this strategic acquisition, ERGO reinforces its market position as third-largest insurance company in the region based on premium volume, building on ADB Gjensidige’s strengths as sixth-largest non-life insurer locally. By integrating ADB Gjensidige into its operations, ERGO will expand its sales network, becoming the second largest in the region. In terms of brand presence, the envisaged merger will enable ERGO to establish itself as the leading insurer in the Baltics by operating under a single brand across all three countries and lines of business.

The merger process of ADB Gjensidige and ERGO in the Baltics will commence as of now and proceed gradually until the end of the year. During this period, both companies will continue to operate as separate entities and ADB Gjensidige will retain its brand before being integrated into ERGO.

“The successful conclusion of this acquisition marks a significant step in the ambition to further develop our diversified, robust business and position ourselves sustainably among the leading insurance companies in all our markets. With this strategic move, we strengthen our position in the region for the long-term, enabling us to grasp attractive growth opportunities in a very dynamic business environment”, said Theo Kokkalas, Chair of the Board of Management of ERGO International AG and Chief Operating Officer of ERGO International.

“As we bring together the teams, skills and expertise of ERGO and ADB Gjensidige, we are ideally positioned to leverage our assets as a truly leading multiline insurance company in the Baltics. This new setup will bring us even closer to clients and partners in Lithuania, Latvia, and Estonia as we strive to provide tailored, comprehensive solutions and significant added value across our products and services”, commented Ursula Clara Deschka, Chief Executive Officer and Chair of the Board of Management of ERGO in the Baltic States.