Talanx acquires P&C insurer from Munich Re ERGO to expand in Turkey
German re/insurer Talanx, the parent company of Hannover Re and HDI, has acquired property/casualty insurer ERGO Sigorta AS from a Munich Re subsidiary to further expand its activities in Turkey.
ERGO Group is the primary insurance unit of reinsurer Munich Re. Talanx subsidiary HDI Sigorta AS has been operating in the Turkish property/casualty insurance market since 2006, with a current market share equivalent to 3.5 percent.
Talanx said the transaction is expected to deliver a positive profit contribution and increase its market share in Turkey by more than 5 percent. In 2018, ERGO Sigorta AS reported a gross written premium volume of €139 million with a market share of 1.6 percent.
As part of its international retail growth strategy, Talanx has identified five core markets - Poland, Turkey, Brazil, Mexico and Chile - and is looking to expand its presence in these regions.
"This acquisition boosts HDI Sigorta from number 11 among insurers in Turkey to the number seven spot," said Sven Fokkema, chief executive officer of HDI International AG and a member of the board of management of Talanx AG. "We have thus moved a major step closer to achieving our strategic goal of ranking among the top 5 insurers in each of our core markets. Through economies of scale and by leveraging potential synergies we are aiming to further enhance the operating profit in Turkey."
Fokkema added: "By acquiring the company we are also substantially improving the diversification of our product portfolio."
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