The Financial Supervision Authority has approved the takeover of Credit Europe Asigurari-Reasigurari by German insurance group ERGO.
ERGO is one of the biggest providers of insurance products in Germany and across Europe. It had a capital of EUR 5.4 billion last year, while its revenues from premiums stood at EUR 18 billion.
“The entrance of an investor of such caliber on the general insurance market confirms the positive direction of developments taking place on the Romanian insurance market,” said the ASF in a statement.
The financial regulator said that ERGO has taken a further step to enter the local mandatory car insurance RCA market through this deal.
The German group will fully acquire the shares in Credit Europe Asigurari-Reasigurari through its subsidiary ERGO Austria International.
The ASF said this was the first significant deal involving an international investor since the start of the financial crisis in 2008.
ERGO is controlled by Munich RE, one of the biggest reinsurance firms in the world.
Last year, ERGO was one of the three firms that was interested in taking over Astra Asigurari, the insurer which is right now in bankruptcy. The deal failed due to a high asking price from Astra’s shareholders.