Austrian alliance: GRAWE Group takes control of LIGA Insurance to build regional hub

ArmInfo. The Austrian  financial concern GRAWE Group and C-Quadrat Investment Group   acquired 100% of the shares of LIGA Insurance. The deal was approved  by the Central Bank of Armenia on January 30, 2020. During a press  conference on February 3, Central Bank Chairman Martin Galstyan noted  that the deal was preceded by eighteen months of negotiations and  collaboration.  As noted, the company will retain the name LIGA  Insurance for now, but with the branding "Member of GRAWE Group": 75%  Equity: LIGA GRAWE Group and 25% Equity: C-Quadrat Investment Group.

Emphasizing the importance of a reputable international insurance  company entering the Armenian market, Central Bank Chairman Martyn  Galstyan noted that this deal will, first and foremost, create  opportunities for diversifying insurance products, lead to potential  changes in the reinsurance industry's approach, and create prospects  for the implementation of large-scale insurance projects. "We will  continue out efforts to activate similar transactions and attract  players to the Armenian market," he said.

Klaus Scheitegel, CEO of GRAWE Group, described the acquisition as a  long-awaited entry into the South Caucasus. He signaled that GRAWE  intends to turn Yerevan into its regional hub, integrating LIGA into  an international network of 19 companies across 13 countries. "One of  our goals is growth. We want LIGA to join our international network,  which consists of 19 companies in 13 countries. We chose Armenia  because the country has a long history, security, and clear  regulatory norms," Scheitegel stated, pointing out the important role  of the Regulator in this regard.

In response to a question from an ArmInfo correspondent about the  possible activities of their reinsurance company in Armenia,  Scheitegel noted that no country in their group should negotiate  reinsurance terms independently. " By negotiating as part of a  massive global group, LIGA will secure better prices and more  transparent, diversified coverage. We will offer good reinsurance  terms to LIGA through our GRAWE Reinsurance. Calculations will become  more transparent and simpler," he explained. The head of GRAWE  compared the insurance business to football, where success is always  the result of the entire team's work.

When asked whether the Group plans to invest in the Armenian real  estate market, like it does in the countries where it operates, he  answered affirmatively. "The real estate market plays an important  role in the insurance business. We currently manage over 43,000  properties globally, covering 2.7 million square meters and always  operate in buildings we own. We do have plans to invest in the  Armenian real estate market, but we still need to conduct firther  research," said the head of GRAWE, noting that he could not disclose  more details at this time, as this is only his second visit to  Armenia.

Responding to a question about the agricultural insurance market,  Scheitegel stated that the group is preparing to present new  agricultural insurance models to the Armenian government to broaden  coverage for local farmers.  "In the coming months, we will discuss  how we can expand insurance coverage in Armenia. We must also  negotiate with the government, as it must provide the legislative  framework within which we will operate," he said.

Andreas Wimmer, CEO of C-Quadrat Investment Group, called their  long-term experience in Armenia "absolutely successful," citing  high-quality governance and professionalism as reasons for expanding  their partnership.

To meet European standards, LIGA Insurance Deputy Executive Director  Vahagn Aghavelyan announced that the local team will undergo rigorous  retraining programs across the GRAWE network. This marks a  significant upgrade in the technical expertise available to Armenian  consumers.