The Zurich Financial Services Group announced that its subsidiary Zürich Beteiligungs-AG (Deutschland) has signed an agreement to acquire car warranty insurer Real Garant Versicherung AG from ADAC-Schutzbrief Versicherungs-AG with retroactive effect as of January 1, 2007.
The purchase price was not disclosed, and the bulletin indicated that the acquisition remains “subject to the approval of the relevant antitrust authorities.” The German financial supervisory authority BaFin has already given its approval. Barring complications it is expected to close in the fourth quarter 2007.
“Real Garant is one of the leading providers of car warranty insurance in Germany with a market share of about 20 percent and a premium volume of €45 million [$65 million] in 2006,” said the bulletin. “The premium volume of this market segment in Germany is about €225 million [$325 million]. Real Garant, headquartered near Stuttgart, offers warranty insurance coverage for new and second hand cars. It has 76 employees and its policies are mainly distributed through a network of approximately 4.000 car dealers. Besides its major market Germany, Real Garant is also present in Belgium, Austria and Spain.”
Annette Court, Zurich’s CEO Europe General Insurance, indicated the acquisition would expand “our market presence in motor insurance and ideally complements our product range in an attractive specialty market. Combining Real Garant’s successful business model with our established The Zurich Way best-practice approaches will allow us to progressively expand into other markets and thus better serve our car insurance customers throughout Europe.”
Source: Zurich – www.zurich.com