ERGO to sell ERGO Life business in Russia to Rosgosstrakh

ERGO Group AG has announced that it is selling its life insurance business in Russia to Rosgosstrakh, a unique Russian insurance company and one of the country’s market leaders in the non-life insurance segment with almost 100 years of history. Representatives of both enterprises have signed a purchase agreement. As is customary for transactions of this type, the sale is subject to regulatory approvals. The parties have agreed not to disclose details of the purchase price.

Under the agreement Rosgosstrakh becomes an owner of 100 percent of shares of ERGO Life and it will take over the whole company, including staff, client portfolio and IT-systems. The change in ownership of ERGO Life Russia will not affect in any way obligations to the current clients of ERGO.

"Based on our Strategy 2021 we have decided earlier this year to re-enter the Life insurance market as quickly as possible”, said Nikolaus Frei, CEO at Rosgosstrakh. “The purchase of ERGO Life enables us to accelerate our development and provide products to millions of our clients in Russia through the banks of Otkritie Group and through our own distribution channels.”

“With Rosgosstrakh, we have found a suitable investor that has an impressive, long-standing history in the Russian insurance market”, underlines Alexander Ankel, Chief Operating Officer of ERGO International AG. “Our ERGO life business in Russia is a perfect match for Rosgosstrakh, paving the way in line with their new business strategy to return to the life insurance market. For us the agreement is another logical step to further driving our international business optimization strategy.”

ERGO is continuously reassessing its international business activities in terms of their strategic relevance, position and market appeal. ERGO International may consider selling companies that fail to meet those requirements now or in the foreseeable future.