Three subsidiaries of Munich Re’s ERGO Group AG will soon become part of Allianz Group.
The German insurance group is selling its legal protection insurance subsidiary DAS Switzerland, as well as assets of DAS Luxembourg and Slovakia, for an undisclosed sum. The ERGO subsidiaries had a combined premium income of €38 million in 2016.
The acquisition will make Allianz Suisse one of the top three firms offering legal protection coverage in Switzerland. Allianz Suisse subsidiary CAP, with annual premium volume of around CHF70 million, is currently number four in the “very attractive” Swiss market while DAS Switzerland is ranked eighth.
The legal protection insurance portfolio of DAS Luxembourg, on the other hand, will be ceded to the subsidiary of Allianz Benelux in Luxembourg while the Allianz country subsidiary for Slovakia will absorb the ERGO legal protection insurance branch for that country.
“Our aim with this merger is to utilise growth opportunities in the non-life business and further strengthen our competitive position,” said Allianz Suisse chief executive Severin Moser. “This will enable us to create the best conditions for our customers and place us in an excellent position in this growth market.”
Pending regulatory approval, the transaction is expected to be completed in April. Details about structures relating to employees, brand identity, and sales have yet to be discussed.