ERGO Group Enters China's P & C Market through Strategic Investment in Taishan Insurance
JINAN, China, June 8, 2020 /PRNewswire/ -- ERGO Group, one of the major insurance groups in Germany and Europe, today announced the signing of a shareholder's agreement and capital increase agreement to make a strategic investment in Taishan Property & Casualty Insurance Co., Ltd (hereinafter referred to as Taishan Insurance), a Shandong-based nationwide property and casualty (P&C) insurer in China. The deal marks a significant step by the leading German insurer to deepen and expand its services in the Chinese market. After completing the transaction, ERGO Group will obtain 24.9% equity interests of Taishan Insurance via its subsidiary ERGO Versicherung AG.
Ling Wen, Shandong Vice Governor attended the signing ceremony and the major parties made speeches.
On behalf of the ERGO Group, Dr. Markus Rieß, Chief Executive Officer and Chairman of the Board of Management of ERGO Group, extended his appreciation to Shandong government leadership, Shandong SASAC, shareholders of Taishan Insurance and relevant parties who made this partnership possible. "In our global portfolio, China holds a central role," Dr. Rieß said. "Taishan Insurance is a dynamic and ambitious insurance company in the Chinese P&C market, which drives its business with great competence and determination. We are looking forward to building a strong partnership together and to bundling our strengths in this important market."
"ERGO Group's strategic investment into Taishan Insurance is a strong entry point into China's P&C market that also complements our existing Life and Health businesses in China. Through this investment, ERGO Group has the opportunity to share our insurance expertise and global resources with Taishan Insurance and to boost our innovative capabilities and competitiveness in the Chinese market," said Jürgen Schmitz, CEO ERGO China.
Zhang Bin, Director of Shandong State-owned Assets Supervision and Administration Commission stressed his confidence in the cooperation. "The strategic investment by ERGO Group will maximize resources from both sides to further drive Taishan's development in the areas of competitiveness, innovation and risk control, and contribute to the high-quality economic development of Shandong Province."
"We are pleased to have ERGO Group become our strategic shareholder. We look forward to working closely with ERGO Group to explore new business opportunities and introduce new business models and technologies to our customers," said Zhu Huajian, Chairman of Taishan Insurance.
The involvement of ERGO Group will enhance Taishan's market offering as China's financial services sector continues to open up. Incorporated in 2011, the Shandong-based Taishan Insurance provides insurance products, services and solutions to customers throughout China. In May 2020, Fitch officially confirmed BBB+ rating for Taishan Insurance with stable outlook, which ranks top among Chinese domestic insurance companies of similar type and size.
For nearly two decades, ERGO Group has made China an increasingly important part of its business strategy. As early as 2005, ERGO Group launched its travel assistance and health TPA service company in China, and in 2013, it established ERGO China Life, its life insurance Joint Venture with Shandong State-owned Asset Investment Holdings Co, Ltd. ERGO Group accelerated its investment in China in 2019 by establishing its regional headquarters, ERGO China, which manages its existing activities and builds new business initiatives by launching a partnership with Great Wall Motors to provide the customers with state-of-the-art solutions powered by big data technology.
This deal with Taishan Insurance is ERGO Group's latest strategic development that demonstrates its long-term and deep commitment to China's insurance market.
This transaction is subject to the approval by relevant authorities.
About ERGO Group
ERGO is one of the major insurance groups in Germany and Europe. Worldwide, the Group is represented in around 30 countries and concentrates on Europe and Asia. Four separate units operate under the umbrella of the Group: ERGO Deutschland AG, ERGO International AG, ERGO Digital Ventures AG and ERGO Technology & Services Management AG. German, international, direct and digital business as well as the global management of IT and technology services are combined there. About 38,000 people work for the Group, either as salaried employees or as full-time self-employed sales representatives. In 2019, ERGO recorded a total premium income of 19 billion euros and paid its customers net policy benefits to customers (gross) of 17 billion euros. ERGO is part of Munich Re, one of the world's leading reinsurers and risk carriers.
More at: www.ergo.com
About ERGO China
ERGO Group entered the Chinese market in 2005 and since then has expanded its portfolio to include life insurance, health insurance, travel assistance and health management. In October 2019, ERGO China was established as a regional headquarters and will centrally manage and organize all of the China business lines, strategic plans and new business initiatives. ERGO China aims to create opportunities for both its partners and customers and is thoroughly committed to supporting the healthy and sustainable growth of China, its insurance market and its citizens over the long term.
About Taishan Insurance
Incorporated in Jinan, Shandong Province in January 2011, Taishan Property & Casualty Insurance Co., Ltd. provides insurance products, services and solutions for customers nationwide. With a registered capital of 2.03 billion yuan and directly supervised by the Shandong Provincial State-Owned Assets Supervision and Administration Commission, it has 11 provincial branches, 42 center sub-branches as well as 119 sub-branches and marketing and service offices. As its efforts to diversify its business scope, Taishan Insurance founded Taisheng Insurance Agency Company and Taishan Private Capital Management Company. Taishan Insurance's business scope includes property insurance, liability insurance, credit and guarantee insurance, short-term health insurance and accident insurance, reinsurance, insurance investment and other services approved by CBIRC.
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