ERGO International AG, which manages the international business portfolio of the ERGO group, completed the acquisition of the non-life insurer ADB Gjensidige in the Baltic states on 2 January. The full merger of the two insurers in the Baltics will take place gradually during this year and is planned to be completed by the end of 2026.
All existing insurance contracts with ADB Gjensidige customers will remain in force, and their coverage will not change. Customers will not need to take any action, and after completion of the merger, ADB Gjensidige customers will be served by ERGO. After the completion of the company integration process, ADB Gjensidige employees will continue to work at ERGO, and thus ERGO will become the employer of more than 1,900 employees in the Baltic states in total.
The acquisition of ADB Gjensidige was carried out after receiving approval from all responsible authorities, including the competition regulators of Latvia, Lithuania and Estonia. Immediately afterwards, the transaction between ERGO International AG and the parent company of ADB Gjensidige, Gjensidige Forsikring ASA, was successfully completed, paving the way for the merger of the companies in the Baltic region.
By carrying out this transaction, ERGO will strengthen its market position as the third-largest insurance company in the Baltic states by the volume of written premiums, including building on the results achieved by ADB Gjensidige – the sixth-largest non-life insurer in the Baltic market. By integrating ADB Gjensidige into its operations, ERGO will combine the strengths of both companies in terms of product offering and sales across all insurance segments. In addition, ERGO will expand its sales network, which will become the second largest in the Baltics.
The merger of the companies in Latvia, Lithuania and Estonia will take place gradually and will be completed by the end of the year. During this period, ERGO and ADB Gjensidige will operate as separate companies, but their operating processes will gradually be combined. The Gjensidige brand will remain in the Baltic insurance market until the completion of the merger at the end of 2026.
“This transaction confirms ERGO’s commitment to strengthening its presence in the Baltic states by continuously developing insurance services and creating new value for our customers,” says ERGO Chair of the Management Board in the Baltic states, Ursula Clara Deschka (Ursula Clara Deschka). “Very soon, the experienced Gjensidige team will join ERGO, enabling us to grow even more efficiently and to combine the best experience of both companies. We will continue to develop digital services, without forgetting that customer relationships and the ability to understand people’s everyday needs are equally important. Together we will become even better and closer partners for current and future customers of ERGO and Gjensidige.”
“The successful completion of this acquisition transaction is an important step towards our commitment to developing our diversified, stable business and to sustainably strengthening our position among the leading insurance companies in all our markets,” notes ERGO International AG Chairman of the Management Board and ERGO International CEO Theo Kokkalas (Theo Kokkalas). “With this strategic step, we are strengthening our long-term position in the region, which enables us to take advantage of growth opportunities in a highly dynamic business environment.”
Originally published at https://inc-baltics.com/ergo-iegadajas-gjensidige-baltija/
Like
Love
Happy
Haha
Sad
