Zurich Financial Services Group said it has completed the acquisition of 66 percent of OOO NASTA Insurance Company, a personal lines insurer in Russia, after receiving all regulatory approval. Transaction terms were not released.
The Zurich, Switzerland-based carrier said it signed an agreement last month to purchase the majority stake in NASTA Insurance, headquartered in Moscow. The deal calls on Zurich to acquire 100 percent of NASTA by 2010.
Zurich said that in addition to its existing Russian businesses the acquisition would position the company as the largest foreign general insurer in the Russian market. The carrier said Russia is the largest future personal lines market in Europe with over 140 million consumers.
NASTA is a 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, Zurich said.
NASTA has more than 3,000 employees and approximately 3,500 captive agents as well as an extensive distribution network, with 67 branches and over 300 representative offices across Russia.
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.
Dieter Wemmer, chief executive officer of Zurich's Europe General Insurance business division, said: "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."
Garry Delba, CEO of NASTA, commented, "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 business unit in Vienna, which includes the carrier's existing units in Austria and Russia. NASTA will be managed jointly with Zurich's existing operations in Russia, the company said.
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