Allianz Group has agreed to acquire the legal protection insurer DAS Switzerland and the assets of DAS Luxembourg and Slovakia from German insurance group ERGO Group AG, the Munich Re subsidiary.
The acquisition will strengthen the competitive position of Allianz’s Swiss Arm, Allianz Suisse, making it one of the top three firms offering legal protection coverage in Switzerland, the insurer said in a statement. Neither side is disclosing financial details.
The combined premium income from the three ERGO subsidiaries totaled $45.4 million in 2016.
Subject to regulatory approval, the transaction is scheduled to be completed at the start of April.
With a premium volume of around $560.5 million and a growth rate of 5.3 percent in 2016 alone, the market for legal protection insurance in Switzerland is very attractive, Allianz added.
The acquisition of DAS Switzerland will give Allianz Suisse and its subsidiary, CAP Legal Protection Insurance Co. Ltd. (CAP), a leading role in the market, the company said.
Allianz noted that CAP is fourth in the Swiss market, with annual premium volume of around $71.3 million, while DAS Switzerland is in eighth place, with a premium volume of approximately $34.7 million.
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 fulfillment of the agreed conditions.
*This story appeared previously in our sister publication Insurance Journal.