Germany's Ergo Group is exiting the insurance market in Belarus and is selling the shares of non-life insurance company Ergo Insurance Company.
Minskas, Baltarusija
© Shutterstock

The sale contract has been signed with Bulgaria's Euroins Insurance Group (EIG), one of the largest insurance companies in Central and Southeastern Europe, which is also buying Ergo insurance businesses in the Czech Republic and Romania. The transaction of undisclosed value still needs approval of market watchdogs, Ergo said.

The 2018 reports of Lithuania's Ergo Life Insurance and Estonia's Ergo Insurance state that negotiations on the sale of the Belarusian company were launched in December and the final price offer was received in February. The sale is due to be finished by July.

According to the Ergo Life Insurance report, the Belarusian company posted 9.334 million euros in revenue last year and earned 237,200 euros in profits. Its own capital stood at 5.221 million euros at the end of the last year.

Ergo entered the Belarusian insurance market last year when it bought 60 percent of Baso, later renamed into Ergo Insurance Company, and later increased its stake in the company to 92 percent.

Ergo Insurance Company is 61.5 percent owned by Ergo Group's enterprises operating in the Baltic states, and Germany's Ergo International controls 30.8 percent.

BNS
It is prohibited to copy and republish the text of this publication without a written permission from UAB „BNS“.

Prime Minister vows to balance 2020 budget after tax proposals rejected

Lithuanian Prime Minister Saulius Skvernelis says his Cabinet's updated 2020 state budget plan...

Skvernelis: risks involved in Belaruskali's investments in Klaipeda are conrolled

Lithuanian Prime Minister Saulius Skvernelis says his government controls the potential risks...

Japan plans to involve in Baltic synchronization project

The Baltic states, which are gearing up for the synchronization of their power networks with those...

Lithuanian researchers developed new technology for precision grinding

A team of researchers at Kaunas University of Technology (KTU) has developed a novel approach to...

Real estate tax expansion amendments returned to government

The Seimas of Lithuania lacked several votes on Tuesday to accept a proposal to expand the real...