R&SA deal gives insurance giant access to fast growing Eastern European and Russian insurance markets
Royal & Sun Alliance Insurance Group has signed an agreement to acquire 50% of GD II - Global Direct Insurance Investments BV (GDI), a joint venture with Direct Insurance Financial Investments (DIFI), to access the fast growing Eastern European and Russian insurance markets.
R&SA will pay £44m in cash for a 50% shareholding together with a further £44m to fund future growth.
“This joint venture gives us a strong platform to lead the development of the Eastern European direct market
Paul Whittaker, Emerging Markets chief executive
GDI's main operation is Link4, Poland's leading direct motor insurer, with net written premiums rising by 42% in 2006 to £30m.
Paul Whittaker, Emerging Markets chief executive said: “Across Emerging Markets there are exciting opportunities for profitable growth and we have already established strong positions in Asia and Middle East, Latin America and the Baltics. This joint venture gives us a strong platform to lead the development of the Eastern European direct market. Link4 has built real momentum in Poland and we will look to replicate this successful model in the Czech Republic and Russia.”
