ALRUD advised ERGO International AG (Munich RE Group) on the sale of Russian insurance company ERGO Life to Rosgosstrakh as well as the sale of Russian insurance company ERGO Non-Life to RESO-Garantia as part of an auction sale.
ERGO International AG COO Alexander Ankel commented: “Our ERGO business in Russia is ideally suited for Rosgosstrakh and paves the way for its return to the life insurance market in accordance with its new business strategy. For us, this agreement is another logical step towards the implementation of our strategy to optimize our international business.”
“In RESO-Garantia, we have found an investor who has impressive and proven expertise on the Russian insurance market,” Ankel said. “With the largest agent network in Russia and more than 900 branches and points of sale, RESO-Garantia has great opportunities to serve the millions of clients to whom it offers specifically targeted insurance products. By concluding this agreement, we are adhering to our international business strategy, which focuses on the markets where we have a strong position.”
ALRUD lawyers provided support to ERGO during all the stages of both transactions, including VDR analysis and validation, the preparation of initial versions of documents on the transaction, the subsequent approval of documents with bidders, and the signing and closing of transactions. In addition to the transactional aspect, most of the work was also related to the negotiation of the transition services agreement, taking into account the processes required to separate the IT infrastructure.
The ALRUD team that worked on the project under the leadership of Alexander Zharskiy (Partner and Head of Corporate and M&A Practice) included representatives of the Corporate and M&A Practice: Senior Associate Sergey Khanaev, Associate Irina Kuyantseva, and Senior Attorney Alexander Shipilov as well as Senior Associate of Commercial Practice Ksenia Erokhina and Associate of Intellectual Property Practice Ilya Khodakov.