German insurer Signa Iduna announced the signing of an agreement to acquire the two Romanian subsidiaries of its peer Ergo Group - owned by Munich Re, Economica.net reported.

The transaction will be subject to the approval of the Financial Supervisory Authority (ASF) and the Romanian Competition Council.

“Being part of a group with over 110 years of experience in the insurance field, which has added value to our business, taking over the portfolios of the two companies naturally complements our already existing range of services. [...] Together with the strong team we have built, we will continue the strategic development plans of the company into a digital future,” says Tiberiu Maier, CEO of Signal Iduna.

While the Romanian subsidiary of Signal Iduna, the leader of the health insurance segment, is among the fastest-growing insurers on the local market - none of the two Ergo subsidiaries managed to advance over the past couple of years. The combined gross premiums cashed by the two dropped below EUR 19 mln in 2020.

“Despite its huge financial potential, the Munich Re group, which controls Ergo, has never seemed to have very serious development plans in Romania,” Economica.net notes.

In contrast, Signal Iduna boasted RON 130 mln (EUR 27 mln) gross premiums after double-digit growth rates over the previous years.

The acquisition of the two Ergo subsidiaries marks another stage in the insurer’s expansion into the local market.

andrei@romania-insider.com

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