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Allianz buying DAS Switzerland from ERGO
Posted on Thursday, 11 January 2018 13:21
Insurance giant Allianz, through its Swiss subsidiary, is buying DAS Rechtsschutzversicherungs (DAS Switzerland) from Germany-based ERGO for an undisclosed sum.
The firm’s Slovakian operations will also absorb ERGO’s legal protection insurance branch in the country and Allianz Benelux will gain DAS Luxembourg’s portfolio as part of the deal.
In 2016, the three targeted companies had a combined premium income of EUR 38.00 million 2016.
Completion is expected by the beginning of April 2018, subject to customary closing conditions, including approvals from the relevant regulatory bodies.
The Swiss legal protection insurance market had premiums CHF 550.00 million (EUR 468.40 million) and a growth rate of 5.3 per cent in 2016.
Headquartered in Zurich, legal expenses insurance services provider Allianz Suisse Versicherungs-Gesellschaft employs 3,600 people in 120 branch offices.
Its subsidiary, CAP, is number four in the market, with annual premiums of CHF 70.00 million.
Chief executive Severin Moser, said the purchase would “utilise growth opportunities in the non-life business”.
Established in 1890, Munich-based Allianz claims to be one of the largest insurance companies in the world, with 140,000 employees in more than 70 countries and a market capitalisation of EUR 88.314 billion as of 10th January 2018.
For the three months ending 30th September 2017, it reported net income of EUR 1.67 billion, falling from the EUR 1.99 billion posted for the same quarter last year.
This decline is attributed to the high number of claims from various hurricanes, storms and other natural catastrophes in the period, the loss from which is estimated to be EUR 529.00 million.
Lausanne-headquartered DAS Switzerland was founded in 1994 and has over 200 employees.
This is ninth acquisition announced by Allianz since January 2017, according to Zephyr, the M&A database published by Bureau van Dijk.
Its most valuable purchases were the USD 3.00 billion takeover of French firm Euler Hermes and the 49.0 per cent stake in Liverpool Victoria General Insurance, bought for USD 671.58 million in December 2017.
© Zephus Ltd