ERGO to sell ERGO Non-Life business in Russia to RESO-Garantia


Press Release, 11.02.2019

ERGO International AG continues to consequently drive its international portfolio optimization strategy and has now announced that it is selling its Non-Life insurance business in Russia to RESO-Garantia. The Moscow-based P&C insurance company provides a range of insurance products and services for individuals and legal entities in Russia and internationally, including motor, voluntary health coverage, property, mortgage, travel, accident, life and liability insurance, as well as reinsurance products. Representatives of both enterprises 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 RESO-Garantia acquires 100 percent of shares in ERGO Non-Life and takes over the whole company, including staff, the client portfolio and IT systems. The change in ownership of ERGO Non-Life Russia will not in any way affect obligations towards ERGO’s current clients.

The premium income of the Russian ERGO Non-Life insurance subsidiary totaled €103.4 million in 2017 (GWP) and it ranks 17th on the Russian Non-Life insurance market. In October 2018, ERGO sold its Russian life insurance subsidiary to Rosgosstrakh, but remains active on the Russian market with its Europäische Reiseversicherungsgesellschaft ERV travel insurance.

“ERGO Non-life is a high quality business with strong consumer loyalty. This acquisition advances the non-organic part of RESO’s growth strategy aimed at expanding its highly profitable motor insurance portfolio and maximizing cost synergies”, says Dmitry Rakovshchik, CEO of RESO-Garantia.

“With RESO-Garantia, we have found an investor that has an impressive and proven track record in the Russian insurance market”, emphasizes Alexander Ankel, Chief Operating Officer of ERGO International AG. “Utilizing one of the most comprehensive branch networks in Russia with more than 900 branches and sales offices, RESO-Garantia is perfectly positioned to service millions of customers with tailor-made insurance products. This agreement also sees us consistently pursuing our international business strategy of focusing on the markets in which we already have a strong footprint.”

For further information, please contact:

Ronny Winkler

ERGO Group AG
Media Relations

Tel +49 211 477-3012
Fax +49 211 477-3113
ronny.winkler@ergo.de
media-relations@ergo.de

About the ERGO Group AG

ERGO is one of the major insurance groups in Germany and Europe. Worldwide, the Group is represented in over 30 countries and concentrates on Europe and Asia. Within the group, three entities manage domestic and international business, as well as digital and direct business (ERGO Deutschland, ERGO International and ERGO Digital Ventures). About 42,000 people work for the Group, either as salaried employees or as full-time self-employed sales representatives. In 2017, ERGO recorded a premium income of 19 billion euros and rendered benefits to customers of 18 billion euros. ERGO is part of Munich Re, one of the world's leading reinsurers and risk carriers.
More at www.ergo.com

Disclaimer

This press release contains forward-looking statements that are based on current assumptions and forecasts of the management of ERGO Group. Known and unknown risks, uncertainties and other factors could lead to material differences between the forward-looking statements given here and the actual development, in particular the results, financial situation and performance of our Company. The Company assumes no liability to update these forwardlooking statements or to conform them to future events or developments.

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