CGNU plc ("CGNU") announces the acquisition of ABN AMRO Magyar Elet es Nyugdijbiztosito Reszvenytarsasag ("Mébit"), the sixth largest life insurance business in Hungary, from ABN AMRO Bank N.V. for Euro 102 million (£64 million).
CGNU plc ("CGNU") announces the acquisition of ABN AMRO Magyar Elet es Nyugdijbiztosito Reszvenytarsasag ("Mébit"), the sixth largest life insurance business in Hungary, from ABN AMRO Bank N.V. for Euro 102 million (Ł64 million).
Hungary is one of the most prosperous countries in the Central and Eastern European region, with a population of 10 million. The life insurance market grew by 38% per annum between 1995-1999, although it remains relatively underdeveloped, with life insurance penetration currently under 1% of GDP.
Mébit focuses on the high net worth segment of the market with distribution through an 800 strong direct sales force and a successful call centre. The main products sold are flexible unit-linked life policies.
The transaction is subject to regulatory approval and is expected to complete in the first half of the year.
Tony Wyand, Group Executive Director for CGNU, said:
"CGNU has several significant and developing businesses in the promising growth markets of Central and Eastern Europe. The acquisition of Mébit, which has an excellent management team, provides a good market position and a platform for further development in Hungary."
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Notes to Editors:
- CGNU is the UK's largest insurance group with over 25% of its premiums and sales in Continental European long-term savings markets.
- CGNU has a leading position in Poland, top 5 ranking in Turkey and newer developing businesses in the Czech Republic and Romania.
- Mébit commenced business in 1997 and has a head office in Budapest. In 2000, gross written premiums were Ł19 million.