News
The First European Company (SE) Registered in Lithuania
2011-01-11
The ERGO Insurance Group merged its three life insurance companies in Lithuania, Latvia and Estonia into an European Company ERGO Life Insurance SE. This is the first European Company, the headquarters of which are established in Lithuania.
Although it has been possible to establish European Companies in Lithuania for six years and there are branches of such companies operating in the country, the central headquarters of the European Company was established in Lithuania for the first time. “It was decided to establish the central headquarters of ERGO Life Insurance SE in Lithuania due to valuable experience in the field of life insurance, the size of the client portfolio held, and a favourable tax environment. The branches of this Company will operate in Latvia and Estonia, thus further strengthening the positions in life assurance by offering new services to clients and improving the service”, states Dr. Kęstutis Bagdonavičius, Chairman of the Board of the ERGO Insurance Group in the Baltic States.
The merger of the life insurance companies is part of the consistent integration of ERGO companies in the Baltic States. “The status of the European Company means the possibility to restructure the business using a single European Mark. Such step helps manage the business more effectively, reduce internal expenses, optimize the capital, increase competitiveness in the market, motivate employees, enhance their competence and offer more attractive products to clients” claims Dr. Bagdonavičius.
According to the Chairman of the Board, upon the establishment of the European Company, clients should anticipate new initiatives in the field of the service, whereas for employees these changes open opportunities to develop in a multicultural team, exchange good practice and participate in international mobility projects in all the Baltic States.
The decision to restructure life insurance companies was adopted by the Supervisory Board of the ERGO Group in 2008, the merger process continued for a year and a half. “The central headquarters of ERGO Life Insurance SE will be established in Lithuania (Vilnius), whereas its branches will be set up in Latvia and Estonia. The terms and conditions of insurance contracts will not change for the existing ERGO clients and there will be no need to conclude new insurance contracts. The European Company ERGO Life Insurance SE will hold a portfolio of 46,000 clients and assets totalling 0.6 billion Litas.
After more than 30 years of negotiations, the status of the European Company was adopted in 2001. There was a possibility to establish European Companies in eight EU Member States in 2004, Lithuania harmonised its national law with the EU legal acts in 2005. Currently, there are 500 operating European Companies; approx. 70% of them are set up in Germany and the Czech Republic.
ERGO Insurance Group in the Baltic States
ERGO is one of the leading insurance groups in the Baltic States and the only one offering all types of insurance: property insurance, accident insurance, life, pension and health insurance. A total of 450,000 clients in the Baltic States trust the services, expert knowledge and financial stability of ERGO.
The ERGO companies operating in the Baltic States belong to the international ERGO group, one of the largest insurance companies in Europe with the annual sum of underwritten insurance premiums totalling EUR 19 billion. ERGO is represented in more than 30 countries in Europe and Asia. The Group serves 40 million clients.
The major shareholder of ERGO is the international reinsurance company Munich Re.
For further information, please contact Lina Jakučionienė, Communications Officer of the ERGO Insurance Group in Lithuania, tel: (8 5) 268 3076, 8 652 68614, lina.jakucioniene@ergo.lt.
