DARAG acquires ERGO Assicurazioni S.p.A
First acquisition in Italy
European run-off insurance specialist, DARAG, announced it has agreed to acquire ERGO Assicurazioni S.p.A from ERGO Italia S.p.A, the Italian insurance consolidator.This acquisition is subject to the authorization of the Italian insurance Regulator, IVASS, and will be DARAG´s first transaction in Italy and a milestone for its growth strategy in Europe. The consideration for the transaction has not been disclosed.
ERGO Assicurazioni was part of the ERGO Italia Group sold by German insurance group, ERGO Group, in 2015, a transaction approved by IVASS. ERGO Assicurazioni’s portfolio is well diversified and includes all major retail non-life personal line products.
Once authorized by IVASS, ERGO Assicurazioni will be renamed DARAG Italia S.p.A and will become the third strategic insurance company within the DARAG Group and a platform for DARAG´s activities in Southern Europe. DARAG intends to continue to develop ERGO Assicurazioni´s current line of business as well as establish a second pillar, run-off operations, with the purpose of ensuring continuity and creating leeway for ERGO Assicurazioni’s further sustainable development.
“Italy is a very attractive market, ranking number five in Europe in terms of gross written premiums. Through ERGO Assicurazioni, we can leverage the expertise and professionalism of our new Italian colleagues who are already well positioned in the Italian insurance market today”, says Arndt Gossmann, Group CEO of DARAG. “By adding run-off solutions to the existing lines of business, ERGO Assicurazioni can also spearhead the introduction of highly efficient capital management instruments in the Italian market.”
DARAG, a regulated Insurance Group and licensed to write business in almost all European countries, has more than 67 years of experience in direct and non-life insurance business. Since 2009, DARAG pioneers capital management solutions for insurance and reinsurance companies by acquiring run-off, inactive portfolios as well as insurance companies. Driven by Solvency II, insurance run-off is regarded as one of the most attractive areas of the industry, with a potential business volume of EUR 247 billion in Europe (PwC, September 2015).