December 9 (SeeNews) - Romanian insurer Allianz-Tiriac said on Wednesday that it has signed an agreement to take over local peer Gothaer Asigurari Reasigurari, part of German insurance group Gothaer, for an undisclosed price.
This is the first acquisition of an insurance company made by Allianz-Tiriac after more than 25 years of organic growth, Allianz-Tiriac and Gothaer Group said in a joint press release.
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The completion of the transaction is subject to the approval of Romania's Financial Supervisory Authority, ASF, and the Competition Council.
"Gothaer Asigurari Reasigurari, a company that has built a strong reputation and a balanced portfolio in its 8 years activity in the local market, will be a good growth engine for Allianz-Tiriac," Allianz-Tiriac Asigurari CEO Virgil Soncutean said.
Allianz-Tiriac maintains its development plans and remains open to new growth opportunities, Soncutean added.
"In the past months, Gothaer Group has shifted its strategic focus to its core markets in Germany. Therefore, we are very pleased that Gothaer Romania will now become part of one of the leading insurance companies in Romania," Gothaer Group CEO Oliver Schoeller said.
The two insurers will continue to operate independently until all the necessary approvals are obtained. Once the acquisition is completed, Allianz-Tiriac will integrate Gothaer Asigurari Reasigurari in its business, taking over portfolio and employees.
At the end of 2019, Gothaer Asigurari Reasigurari portfolio amounted to gross written premiums of 90 million lei ($22.4 million/ 18.5 million euro) and 50,000 contracts of individuals and companies.
Established over 25 years ago, Allianz-Tiriac is part of German group Allianz, a provider of financial and insurance services. At the end of June, Allianz-Țiriac ranked second biggest among Romanian insurers with a 12.1% market share, after City Insurance, according to the most recent data published by ASF. Gothaer is not ranked among top ten insurers by ASF.
Allianz holds a stake of 52.16% in Allianz-Tiriac, Cyprus-registered Vesanio Trading Limited owns 44.79%, while the remainder is held by individual investors, according to data published on the company's website.
With 4.5 billion euro premiums written and 4.1 million customers, Gothaer Group is one of the biggest mutual insurance companies in Germany. The company offers life, health and non-life insurance.
(1 euro=4.8436 lei)
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