The Zurich Financial Services Group has signed an agreement for the purchase of a majority stake in OOO NASTA Insurance Company, headquartered in Moscow, Russia.
“In combination with Zurich’s existing Russian businesses, this acquisition positions the Group as the largest foreign general insurer in the Russian market,” said the announcement. ” With over 140 million consumers, Russia represents the largest future personal lines market in Europe.”
The transaction is expected to close in the first half year 2007, pending Russian regulatory approvals.
Zurich explained that NASTA is a leading personal lines insurer in Russia, with approximately $230 million of gross written premiums in 2006, and a strong record of organic premium growth in each of the past five years. NASTA has more than 3,000 employees and approximately 3,500 tied agents as well as an extensive distribution network, with 67 branches and over 300 representative offices across Russia.
“The transaction gives Zurich a 66 percent share in NASTA and an agreed path to 100 percent ownership by 2010,” the bulletin continued. “Both parties have agreed not to disclose the price of the transaction.”
Zurich noted that it “has been active in the Russian market for 10 years, steadily growing its corporate and commercial portfolio and adding a personal lines portfolio in 2005. The acquisition of NASTA allows Zurich to extend its distribution platform in an important and fast growing market.
Dieter Wemmer, CEO of Zurich’s Europe General Insurance business division, commented: “In line with our growth strategy this acquisition adds substantial distribution capacity and allows Zurich to leverage its efficient pan-European operating platform. It represents an important step in our drive to be the leading pan-European insurer in our chosen markets.”
NASTA’s CEO Garry Delba added: “We are delighted to become part of the Zurich Group and look forward to combining Zurich’s technical excellence with NASTA’s track record of premium growth and product innovation.”
The acquisition will operate within Zurich’s recently established Central and Eastern Europe (CEE) business unit in Vienna, which includes the Group’s existing units in Austria and Russia. It is planned that the acquired entity will be managed jointly with Zurich’s existing operations in Russia.
Topics Mergers & Acquisitions Europe Russia
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