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

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.”