ERGO drives further optimization of its international insurance portfolio – ERGO Croatia sold to Sava Insurance; ERV Ukraine goes to Euroins

ERGO Group AG announced today that it is selling its life and non-life subsidiary in Croatia to Sava Insurance Company. ERGO’s European travel insurance subsidiary in Ukraine goes to Euroins Insurance Group (EIG). Representatives of ERGO, Sava Insurance and EIG have signed purchase agreements. As is customary for transactions of this type, the sale is subject to regulatory approval. All parties have agreed not to disclose details of the purchase prices.

The premium income of the two ERGO subsidiaries totalled EUR 18.2m in 2017.

With a total GWP volume of EUR 0.32m, the ERGO life entity in Croatia achieved a 0.2 percent share in the Croatian life insurance market in 2017. The non-life entity of ERGO Croatia realized a total GWP volume of EUR 12.8m and achieved a 1.2 percent market share in the Croatian non-life insurance market.

With a total GWP volume of EUR 5m in 2017 serving approximately 627,000 customers, the Ukrainian ERGO entity is the second largest travel insurance provider achieving a market share of 10.7 percent for the medical expense travel insurance market. Based on the selling ERGO and EIG additionally agreed on a business cooperation. That includes the transfer of ERV know how to EIG companies in order to offer travel insurance products either under the ERV brand or using a co-branding model utilizing EIG’s current or newly developed distribution channels.

“With Sava Insurance and EIG we’ve found the right investors which have been showing from the very beginning the willingness to create a win-win situation for all parties involved”, says Alexander Ankel, Chief Operating Officer of ERGO International AG. “With the selling of the two ERGO subsidiaries we’re consequently following our international strategy to continuously reassessing our international business activities.”