Ergo, the primary insurance arm of reinsurer Munich Re, will buy property/casualty insurer SHC Insurance for €66 million, extending its presence in South East Asia.
SHC recorded a premium income equivalent to €45 million last year, with a profit amounting to an equivalent of €5 million in 2013. SHC Insurance ranks on the 14th position on the Singapore property-casualty market.
Ergo already has a presence in Vietnam through its 35 percent stake in Global Insurance Company.
Jochen Messemer, member of the Ergo board of management, said: “Growth prospects for the upcoming years are also positive, sup-ported by the local supervisory authority’s initiatives to develop Singapore into a global insurance hub by 2020 comparable to the London market. SHC Insurance is well positioned for future growth.
“We want to further expand the business of SHC Insurance. Ergo can leverage its strong expertise in risk management as well as its broad experience in further developing innovative products and sales channels.
“Most property-casualty insurance markets in the region are relatively small, with premium volumes ranging between €800 million and €3 billion in the individual markets. In many of these markets, only few qualified experts are available. We aim to steer the individual companies through a regional management team in Singapore. The acquisition of SHC Insurance is another important milestone for this purpose.”
Ergo, Munich Re, Asia-Pacific, Jochen Messeme, SHC Insurance