Fortis announced today that its international insurance arm, Fortis Insurance International, has signed a preliminary agreement with the aim of acquiring Etalon Life, Ukraine's seventh largest Life insurance company. This acquisition marks Fortis' entrance into the Ukrainian insurance market, in a cash transaction of approximately EUR 7.6 million (UAH 49 million).
Based in Kiev, Etalon Life was incorporated in 2003 and has been successfully developing Life insurance activities, as well as solid distribution capabilities through agents and banks. Etalon Life operates a network of 26 branches and some 100 agents across the country and has concluded distribution agreements with several major local banks. The company ranks seventh in Ukraine in terms of gross written premiums and has a strong position in term life insurance.
Peer van Harten, CEO of Fortis Insurance International comments: "With over 47 million inhabitants, Ukraine has a fast-growing economy supported by a well-developed industrial base, a highly trained workforce and a good educational system. Over the last few years, the Ukrainian government has actively promoted market reforms and we believe Ukraine has the potential of becoming a growth engine in Europe. We think it is the right time to enter this promising market. We are also impressed with the quality of Etalon Life's management, who share the Fortis values of transparency, professionalism and integrity, and we look forward to working with them".
Although it is still a relatively "young" company, Etalon Life has been able to gain a 5.2% market share in just a few years and it represents an ideal platform for future growth in an insurance market characterised by low penetration rates and double digit growth.
The acquisition is expected to be finalised in the fourth quarter of this year, subject to the customary closing conditions and regulatory approval. It will have no impact on Fortis's net profit per share.
Fortis is an international financial services provider engaged in banking and insurance. We offer our personal, business and institutional customers a comprehensive package of products and services through our own channels, in collaboration with intermediaries and through other distribution partners. With a market capitalisation of EUR 36.2 billion (31/07/2006), Fortis ranks among the twenty largest financial institutions in Europe. Our sound solvency position, our presence in 50 countries and our dedicated, professional workforce of 58,000 enable us to combine global strength with local flexibility and provide our clients with optimum support. More information is available on www.fortis.com
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