German company Ergo, controlled by the giant Munich-based reinsurance firm Munich Re, will submit in a few weeks the final documents for a license to sell mandatory car insurance policies (RCA) in Romania, according to sources in the market cited by local Profit.ro.

Ergo has submitted the documents for a capital boost of RON 4.5 million (EUR 1 million). The company carried out another capital boost of around EUR 2 million at the beginning of this year.

Ergo initially only had the license to operate on the life insurance segment. In order to enter the general insurance market, the firm acquired Credit Europe Asigurari last year. The company also concluded an agreement with one of the most important loss adjusters in Romania, a company affiliated to an international group.

Ergo will start selling RCA policies in January 2018, according to market sources. The company plans to become an important player on the RCA market, which generates over 70% of all subscriptions.

Munich Re, the major indirect shareholder of Ergo, had total assets of EUR 276.5 billion at the end of 2015.

editor@romania-insider.com

(photo source: Ergo.com)