Munich Re's ERGO sells Russian non-life business to RESO-Garantia as it refocuses
Munich Re's primary insurance unit ERGO Group is selling its non-life insurance business in Russia to RESO-Garantia as part of what it called an international portfolio optimisation strategy.
Under the agreement, RESO-Garantia will acquire 100 percent of shares in ERGO non-life and take over the whole company, including staff, the client portfolio and IT systems.
Moscow-based P&C insurer RESO-Garantia provides a range of insurance solutions both in Russia and internationally, including motor, voluntary health coverage, property, mortgage, travel, accident, life and liability insurance, as well as reinsurance products.
In October 2018, the German insurance group ERGO sold its Russian life insurance subsidiary to Rosgosstrakh, but remains active on the Russian market with its Europäische Reiseversicherungsgesellschaft ERV travel insurance.
ERGO has been loss-making for many years. It returned to profitability in 2018 after several restructuring measures. In January 2018, Munich Re sold three of its ERGO operated legal protection subsidiaries to Allianz Group, including DAS Switzerland, DAS Luxembourg, and DAS Slovakia.
Alexander Ankel, chief operating officer of ERGO International, said: “With RESO-Garantia, we have found an investor that has an impressive and proven track record in the Russian insurance market. 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,” Ankel added.
Dmitry Rakovshchik, CEO of RESO-Garantia, said: “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.”
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