The FINANCIAL -- Allianz Group has agreed to acquire the legal protection insurance subsidiary DAS Switzerland and assets of DAS Luxembourg and Slovakia from German insurance group ERGO Group AG.
The acquisition will strengthen the competitive position of Allianz Suisse, making it one of the top three firms offering legal protection coverage in Switzerland, according to Allianz Group.
The combined premium income from the three ERGO subsidiaries totaled 38 million euros in 2016. The transaction remains subject to regulatory approval. The parties have agreed not to disclose financial details of the transaction.With a premium volume of around 550 million Swiss francs and a growth rate of 5.3 percent in 2016 alone, the market for legal protection insurance in Switzerland is very attractive.
The acquisition of DAS Switzerland will give Allianz Suisse and its subsidiary CAP a leading role in the market, underlining their growth ambitions. CAP is now number four in the Swiss market, with annual premium volume of around 70 million Swiss francs, while DAS Switzerland is in eighth place with a premium volume of approximately 34 million Swiss francs.
Utilizing growth opportunities “Our aim with this merger is to utilize growth opportunities in the non-life business and further strengthen our competitive position. This will enable us to create the best conditions for our customers and place us in an excellent position in this growth market,” says Severin Moser, CEO of Allianz Suisse.
The transaction is scheduled to be completed at the start of April, pending regulatory approval. Details about structures relating to employees, brand identity and sales will be communicated in the coming weeks pending discussions with DAS Switzerland.
The ERGO legal protection insurance branch for Slovakia will be absorbed by the Allianz country subsidiary for Slovakia while the legal protection insurance portfolio of DAS Luxembourg will be ceded to the subsidiary of Allianz Benelux in Luxembourg as part of the transaction, subject to fulfilment of the agreed conditions.