Baloise strengthens its position in Belgium

Baloise has acquired the Belgian insurance business of Avéro, a subsidiary of the Dutch Eureko Group. The purchase price amounts to 75 million euros. The purchase is expected to be completed by the second half of 2010. The brand name "Avéro" will be used during a short transitional period before being removed from the Belgian market. The offices in Brussels will, however, be retained. Thanks to the purchase of Avéro, the Baloise Group will also be present in the French-speaking region of Belgium.

Avéro is active in the nonlife sector and focuses primarily on the property and transport insurance areas. It holds a market share of 13% in the transport sector. It sells its products to more than 100,000 private and corporate customers exclusively via a network of brokers. In 2009, Avéro achieved a premium volume of 124 million euros. It has 177 employees.

Until now, Baloise was active in Belgium via its business unit Mercator Verzekeringen. This company provides a comprehensive range of insurance and pension solutions for private individuals as well as small and medium-sized enterprises. Mercator sells its products - just like Avéro - exclusively via a network of brokers. In 2009, Mercator achieved an overall business volume of 543 million euros; 384 million related to nonlife business (The figures in EUR regarding the business volume of Mercator were calculated using an exchange rate of 1.51 CHF/EUR). Mercator has 825 employees.

With the acquisition of Avéro, Baloise will increase the market share of its Belgian nonlife business to around 5%, making it the sixth largest nonlife business in Belgium. Jan De Meulder, member of the Corporate Executive Committee and Head of the International corporate division at Baloise, commented: "This acquisition represents another step in our systematic efforts to expand our international business. I am looking forward to writing the next chapter of our success story in Belgium together with the employees of Avéro, under the direction of our CEO, Gert De Winter. Thanks to the common brand positioning, the "Safety World" (classic insurance combined with intelligent prevention), we will be able to offer our customers even greater value, thereby accelerating our profitable growth."

Baloise Group, Aeschengraben 21, CH-4002 Basel

Internet: www.baloise.com

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