April 17 (SeeNews) - Bulgarian insurance company Euroins Insurance Group (EIG) said on Tuesday it has signed an agreement to acquire Ukrainian travel insurance company ERV, owned by German insurance group ERGO.
"The deal is expected to be finalised after receiving approval by the regulatory authorities," EIG said in a statement. The price of the deal was not disclosed.
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The agreement envisages future cooperation between EIG and ERGO, including transfer of know-how and opportunities for EIG to sell travel insurance under the ERV brand in Ukraine and other countries in which it operates.
"The acquisition of ERGO's travel insurance business in Ukraine is in line with our strategy to expand and diversify our portfolio in Eastern Europe and strengthens our position as a leading insurance group in the region," Kiril Boshov, CEO at EIG, said in the statement.
"We plan to keep ERV Ukraine as a separate entity outside Euroins Ukraine in order to focus our efforts on sales of travel insurance product,"he added.
According to EIG, ERV is the second largest travel insurance provider in Ukraine with a market share of 10.7%. The company generated gross written premiums (GWP) of 5 million euro ($6.17 million) in 2017, delivering services to nearly 627,000 clients.
"We’re very happy to have EIG signing the purchase agreement including a far-reaching sales cooperation that helps us entering new markets and making our sales operations even more powerful," Richard Bader, CEO of ERV, said.
EIG, part of financial and insurance group Eurohold Bulgaria [BUL:4EH], provides services to more than 2.5 million customers in several countries including Bulgaria, Romania, Macedonia, Ukraine and Greece.
ERGO is part of Germany-based reinsurer Munich Re.
($= 0.8096 euro)