Allianz Suisse acquires DAS Switzerland
The Allianz Group is acquiring the legal protection insurance subsidiary DAS Schweiz and the legal protection insurance portfolios of DAS Luxembourg and Slovakia from ERGO Group AG. In doing so, the insurance group aims to strengthen its position in the Swiss market.
Allianz Group is acquiring the legal protection subsidiary DAS Switzerland and the legal protection insurance portfolios of DAS Luxembourg and Slovakia from the German insurance group ERGO Group AG. Through the acquisition, Allianz Suisse will strengthen its competitive position and become one of the three largest providers in the Swiss market for legal expenses insurance. Premium income of the three ERGO subsidiaries amounted to approximately 38 million euros in 2016. The transaction is subject to approval by the regulatory authorities. The parties have agreed not to disclose financial details of the transaction.
Attractive market
With a premium volume of around CHF 550 million and a growth rate of 5.3 percent in 2016 alone, the market for legal protection insurance in Switzerland is very attractive. Through the acquisition of DAS Schweiz, Allianz Suisse and its subsidiary CAP are taking on a leading role in the market and underpinning their growth ambitions: CAP is currently No. 4 in the Swiss market for legal protection insurance with an annual premium volume of around CHF 70 million, while DAS Switzerland is No. 8 with a premium volume of around CHF 34 million.
Exploit growth opportunities
"With this merger, we want to take advantage of growth opportunities in the non-life business and further strengthen our competitive position. This creates the best conditions for our customers and puts us in an excellent position in this growth market," Severin Moser, CEO of Allianz Suisse, is convinced. The transaction is expected to close in early April, subject to regulatory approval. Details on the employment and distribution structure as well as the brand identity will be communicated in the coming weeks following the conclusion of discussions with DAS Switzerland.
Subject to the fulfilment of the agreed conditions, the transaction will see ERGO's legal expenses insurance branch in Slovakia taken over by Allianz's Slovakian subsidiary, while DAS Luxembourg's legal expenses portfolio will be transferred to its subsidiary Allianz Benelux in Luxembourg.
