ERGO and Avantha sign joint venture agreement in ... - Avantha Group

1 November 2012
Press release
page 2/3
ERGO’s expertise in product development, multi distribution approaches
and risk management, and will be complemented by Avantha’s strong
Indian heritage and its reputation as a leading Indian corporate house.
With this strategic move, ERGO strengthens its presence in India and
continues to pursue its international growth strategy with a focus on the
emerging Asian markets. Dr. Jochen Messemer is convinced of the
perfect match of the two partners: “When expanding our international
business by the way of partnership, we look very carefully for partners
who share our long-term view and sustained business approach. We
are convinced that Avantha is a perfect partner with a strong cultural fit.
Furthermore, we believe that the fundamentals in the Indian life
insurance market are attractive after a series of regulatory adjustments
over the last two years.”
With the announcement of reforms in this sector, which now seeks to
provide a fostering environment for the growth and development of this
industry as well as more customer-friendly measures, the Avantha
Group considers the timing and the partnership match to be ideal.
Gautam Thapar expects a very successful partnership with ERGO and
points out: “We are convinced that we are teaming with one of the
world’s most renowned partners for the life insurance business in India.
With ERGO’s extensive insurance know-how and Avantha firm roots in
the Indian market, we will build up a successful business.”
The partners are confident that the market offers long-term growth and
profit potential to existing and new players despite the recent challenges
and market contraction in the Indian life insurance market. India
currently represents more than 17% of the world’s population, but it
contributes only 2% of total life insurance premiums. This is why the
Indian life insurance market is highly attractive for new private players.
Avantha Group is one of India’s leading business conglomerates with
20,000 employees. The Group has business interests in diverse areas,
including pulp and paper, power transmission and distribution
equipment and services, food processing, farm forestry, chemicals,
energy, infrastructure, information technology (IT) and IT-enabled
services.
ERGO is one of the major insurance groups in Europe and part of
Munich Re, one of the world’s leading reinsurers and risk carriers.
Worldwide, ERGO is represented in over 30 countries and concentrates
on Europe and Asia. The new life insurance joint venture will broaden
ERGO’s product portfolio in India: Via HDFC ERGO, which is a joint
venture with HDFC Ltd., ERGO already offers non-life insurance
products. The company is one of the top four private non-life insurers in
the country.