Switzerland’s Baloise Acquires Belgian Nonlife Unit of Eureko

Switzerland's Baloise Group is acquiring Belgium's Avero Schadeverzekering Benelux NV in an effort to consolidate its position in the Belgian market.

The purchase price for Avero, a unit of Dutch insurer Eureko BV, is 75 million euros. The acquisition is subject to regulatory approval. Baloise said it expects to complete the acquisition in the second half of this year.

According to Baloise, after a "short transition period," the Avero brand will no longer be used. Avero's Brussels location will be maintained.

Baloise said the acquisition will extend its insurance activities to the French-speaking portion of Belgium and will strengthen its presence in the Belgian nonlife market, giving it a market share of about 5% and making it the sixth-largest nonlife insurer in the country.

"With this acquisition, we continue our consistent growth in international business," said Jan De Meulder, head of the international division, in a statement.

Avero operates mainly in property and marine insurance, and has a market share of 13% in the transportation business. The insurer distributes its products to more than 100,000 private and corporate clients exclusively through brokers. It has 177 employees. In 2009, its premium volume was 124 million euros.

Baloise does insurance business in Belgium through its own unit, Mercator Verzekeringen, which offers a range of insurance and pensions solutions for individuals and small and medium-sized businesses. Mercator's products are also distributed exclusively through brokers.

With 825 employees, Mercator's 2009 total business volume was 543 million euros, of which 384 million euros was attributed to nonlife insurance.

Last year, Baloise bought Fortis Luxembourg IARD, the Luxembourg-based nonlife activities of Fortis Group, for 23 million euros (BestWire, Oct. 8, 2009).

(By David Pilla, international editor, BestWeek: [email protected])