Talanx AG, Germany’s 3rd largest and one of the major European insurance groups by premium income announced today the acquisition of ERGO Sigorta AS in Turkey with the aim to continue with its strategic move to position itself in the five following core markets: Chile, Turkey, Poland, Brazil and Mexico. The Hannover-based Group is active in more than 150 countries and operates under a number of different brands. These include HDI, delivering insurance solutions to retail customers and industrial clients, Hannover Re, one of the world’s leading reinsurers, the bancassurance specialists Neue Leben insurers, PB insurers and TARGO insurers as well as Ampega, a funds provider and asset manager.
According to the official newsroom post, the premium volume generated by the division in Turkey will increase by 139 million (€) to more than 400 million (€) and the market share will rise to more than 5 percent. The transaction is expected to deliver a positive profit contribution by the 2nd year at the latest and hence also has favourable implications for the earnings per share. The parties have agreed not to disclose the purchase price. The transaction is still subject to approval by the relevant supervisory authorities, which is anticipated for the third quarter of 2019.
Sven Fokkema, CEO of HDI International AG and a member of the board of management of Talanx stated: “This acquisition boosts HDI Sigorta from number 11 among insurers in Turkey to the 7th spot,”. “We have thus moved a major step closer to achieving our strategic goal of ranking among the top five insurers in each of our core markets,” he added. “Through economies of scale and by leveraging potential synergies we are aiming to further enhance the operating profit in Turkey.”