GREECE: ERGO to become the largest property-casualty insurer by acquiring ATE Insurance

21 August 2014 — Vlad BOLDIJAR
ergo2013The ERGO Insurance Group announced it has agreed to acquire 100% of the Greek company ATE Insurance, the property-casualty arm of PIRAEUS Bank - Greece's second-largest lender by assets. The purchase price is EUR 90.1 million, ERGO noted in a press release. The deal is pending regulatory approvals and is expected to be completed by the end of 2014.

"Greece has a low insurance penetration compared with the rest of the EU. We see growth opportunities especially in the property-casualty segment", says Jochen MESSEMER, Member of the Board of Management of ERGO Insurance Group.

ATE Insurance was founded in 1980 and was acquired by PIRAEUS Bank in July 2012. ATE Insurance is the 5th largest property-casualty insurer on the Greek market and also offers life insurance products to its customers. It recorded a premium income of EUR 170 million in 2013, of which EUR 130 million in property-casualty segment.

At the same time, ERGO's Greek subsidiary, ERGO Hellas, recorded a premium income of EUR 135 million in 2013, mostly in the property-casualty segment. According to the German insurer, after completion of the transaction, ERGO will become the largest property-casualty insurer in Greece. "Our strategy is to safeguard and further expand profitability and the market leadership", Jochen MESSEMER explained.

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