This is Allianz-Tiriac’s first acquisition after 25 years of organic growth.
The transaction is subject to the approval of the local authorities.
The parties have agreed not to disclose the purchase price.
Gothaer Asigurari Reasigurari, based in Bucharest, entered the Romanian market in 2012 and sells its non-life insurance products primarily through brokers and multiple agents. The company has seven branches.
In 2019, it reported gross underwritings of around EUR19 million, down 42% on the year. The insurer currently manages around 50,000 insurance contracts and has 135 employees.
The two insurance companies will continue to operate independently until regulatory approvals are secured. Once the deal is completed, Allianz-Tiriac will integrate Gothaer in its business, taking over its portfolio and employees.
Allianz-Tiriac reported gross underwritings totaling over RON1 billion in January-September 2020, down 2.5% on the year, but its operating profit grew 25% on the year to nearly RON124 million.
Allianz-Tirac was assisted by law firm Schoenherr si Asociații SCA and PwC consulted in the due diligence process, while Gothaer was assisted by law firm Hogan Lovells LLP.