PRESS: Germany’s Ergo Group to sell Russian insurance unit

MOSCOW, Feb 6 (PRIME) -- Germany’s Ergo Group has put up for sale its Russian subsidiary, insurance company Ergo, business daily Vedomosti reported Wednesday citing sources.

Ergo has been operating in Russia for 28 years and is an all-lines insurer. In January–September 2018, the company’s collections fell 2.8% on the year to 4.8 billion rubles.

Ergo Group seeks to sell the company for around 2 billion rubles, one of the sources said.

Two sources said that AlfaStrakhovanie is among companies interested in the purchase of Ergo.

“We do not comment on rumors and speculations,” a representative of AlfaStrakhovanie said.

Ugoria Insurance Company was also interested in Ergo, but the deal is unlikely possible due to complicated talks on the price, an acquaintance of the company’s employee said.

Experts said the sale of Ergo is in line with Ergo Group’s strategy to leave the Russian market.

(65.5691 rubles – U.S. $1)

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