Talanx strengthens its business in core market Poland through ten-year bancassurance agreement

Ten-year cooperation between Europa Group and Bank Millennium through bancassurance agreement
Europa Group expands portfolio in life protection and non-motor business in Poland by growing its footprint in the bancassurance sector

The Retail International division of the Talanx Group is strengthening its presence in the core market of Poland. Europa Group, a subsidiary of HDI International AG, and Bank Millennium are concluding a ten-year exclusive bancassurance agreement. As part of the transaction Europa Group is acquiring 80 percent of the shares in a company owned by the bank for the sale of life protection and non-motor products. By entering into this cooperation Talanx is further strengthening its position in its core market Poland. The partnership is expected to launch in the second half of 2023.

The partnership with Bank Millennium will help Talanx to realise its strategic objectives by growing further in life protection and non-motor business. The Group will also grow its footprint in the bancassurance sector and accelerate its digitalisation.

"We are very pleased to strengthen our cooperation with Bank Millennium and to extend and solidify our existing relationships through this joint initiative. The transaction solidifies our strategic position of Europa Group in Poland. We are convinced that the partnership will contribute to further profitable growth for the Retail International division as a whole and our Polish operations in particular," comments Dr Wilm Langenbach, the member of the Board of Management of Talanx AG with responsibility for the Retail International division and Chief Executive Officer of HDI International AG.

"Through the cooperation with Bank Millennium and its strong distribution network, serving roughly four million customers, we are systematically expanding our relations with a valuable bancassurance partner in Poland," adds Christian Müller, the member of the Management Board of HDI International AG responsible for business in Europe. "We intend to combine the vast experience of the two organisations and look forward to our continued successful collaboration."

The partnership will enable Europa Group to grow its bancassurance business as it expands the product and channel offer to customers of Bank Millennium.

“Expanding our relationship into a strategic and long-term cooperation with Bank Millennium creates a strong foundation for the stability and successful development of Europa Group companies. We significantly increase the scale of operations on the Polish market and build a solid base for profitable business growth. The strengthening of our financial condition and the tightening of the business relation with Bank Millennium will translate into the enhancement of the insurance offer for the bank's customers, so that it provides the highest possible value and protection of life and property in today's turbulent times”, stresses Artur Maliszewski, president of the management board of Europa Group.

“Bank Millennium has been cooperating with Europa Group for more than 15 years and I am very satisfied to announce the enhancement of this cooperation today. Combining unique experience and strengths of both companies will result in providing a competitive offer of selected insurance products and improvements in distribution channels. Progressing digitalisation and changing expectations of clients made a long-term partnership an important element also in terms of focus on technology developments. I am sure we will jointly deliver major value proposition improvements for our clients," said Joao Bras Jorge, President of the Management Board of Bank Millennium S.A.

The ultimate consideration is still subject to certain closing adjustments and expected to amount to approximately PLN 500 million (EUR 104 million). A (performance-based) review mechanism to reflect potential outperformance and underperformance in respect of jointly targeted business goals has been agreed as part of the overall partnership.

Bank Millennium, a subsidiary of the Portuguese Banco Comercial Portugues, was established in 1989 and employs over 6,900 people. Measured by total assets, Bank Millennium is the seventh-largest bank in Poland. Insurance products are sold through a network of 635 branches and through internet and mobile bank platforms. In 2022 its total assets amounted to around PLN 111 billion (EUR 24 billion).

HDI International AG, responsible for the international retail and SME business within Talanx Group, has been represented in the Polish market by Europa Group since 2012. The Europa Group consists of the companies Europa Non-Life (Towarzystwo Ubezpieczeń Europa SA) and Europa Life (Towarzystwo Ubezpieczeń na Życie Europa SA). In 2021 Europa Group generated a gross premium volume of altogether EUR 138 million with market shares of 1.7 percent in life and 0.6 percent in non-life business. After 3Q 2022 Europa Group’s share by gross written premiums in the bancassurance sector was estimated at 8 percent in life and 6 percent in non-life segment. HDI International is additionally active on the Polish market with Warta, the second-largest insurer in Poland.

Talanx intends to finance the transaction from existing funds. The acquisition is expected to close in the first half of 2023. The transactions are subject to approval by the relevant supervisory authorities.

Disclaimer

This news release contains forward-looking statements which are based on certain assumptions, expectations and opinions of the Talanx AG management. These statements are, therefore, subject to certain known or unknown risks and uncertainties. A variety of factors, many of which are beyond Talanx AG’s control, affect Talanx AG’s business activities, business strategy, results, performance and achievements. Should one or more of these factors or risks or uncertainties materialise, actual results, performance or achievements of Talanx AG may vary materially from those expressed or implied in the relevant forward-looking statement. Talanx AG does not guarantee that the assumptions underlying such forward-looking statements are free from errors nor does Talanx AG accept any responsibility for the actual occurrence of the forecasted developments. Talanx AG neither intends, nor assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated.