Talanx, Meiji Yasuda Announce Second Acquisition in Poland

Germany-based Talanx Group made a further investment in its strategic target market of Poland as Talanx International AG announced it would acquire 100% of the shares in Tuir Warta SA (Towarzystwo Ubezpieczen i Reasekuracji Warta SA) for 770 million euros (US$995 million) from the Belgium'sKBC Group NV.

The transaction is subject to regulatory approvals and is expected to be completed in the second half of 2012. After closing of the transaction, Talanx said its Japanese partner Meiji Yasuda Life Insurance Co. will take more than 30% of Warta shares from Talanx International.

Warta Group reported 2010 gross premium income of about 1 billion euros. Of that, 560 million was in life insurance and 443 million euros in nonlife insurance. The group includes life insurance company Warta Towarzystwo Ubezpieczen na Zycie SA.

The Polish insurer has about 1.5 million customers. Two-thirds of that are nonlife private clients and one-third corporate clients. The group has 2,765 employees and operates a distribution network of 8,000 tied and multi-tied sales people accessed through 4,000 agencies and about 240 Warta branch offices.

Warta is also one of the leading Polish industrial insurers, said Talanx. It has a strong market position in marine and aviation insurance.

Talanx has been operating motor, general liability, property and life insurance businesses in Poland through two companies: HDI Asekuracja TU SA and HDI-Gerling Zycie TU SA.

Last December, Talanx and Meiji Yasuda Life announced they would take over the majority of Europa Group, based in Wroclaw (Best's News Service, Dec. 29, 2011). That transaction is also expected to close in the second quarter this year.

After closing of the Warta transaction, Talanx will be the second-largest insurance group in Poland, according to 2010 statistics published by the Polish Financial Supervisory Authority, the German group said.

"With this additional acquisition in Poland, Talanx is continuing to deliver on its strategy of strengthening the international part of its portfolio," the group said. "Central and Eastern Europe and Latin America are target markets for Talanx. Talanx aims, in the long run, to grow the foreign share of gross premiums from primary insurance (industrial lines and retail) to half of the total gross premiums from primary insurance."

Talanx is the management holding company of HDI VaG, a Germany-based mutual insurer that owns a number of life and nonlife insurers, along with the reinsurer Hannover Re.

Last October, KBC Group announced it would sell Belgian multiple-line insurer Fidea to investment firm J.C. Flowers & Co. as part of a strategic regrouping effort (Best's News Service, Oct. 18, 2011).

HDI VaG, Hannover Re and Meiji Yasuda Life Insurance Co. all currently have a Best's Financial Strength Rating of A (Excellent).

(By David Pilla, international editor, BestWeek: David.Pilla@ambest.com)