Belgian group KBC will sell its Polish insurance unit Warta for EUR 770 million to Germany’s third-biggest insurer Talanx International, Talanx said on its website Friday, announcing a transaction which will significantly change the balance in eastern Europe’s largest insurance market.

So far Talanx has been operating in Poland through two companies in motor, general liability, property and life insurance: HDI Asekuracja TU S.A. and HDI-Gerling Zycie TU S.A.

Warta is the second Polish takeover announced by Talanx within two months. Back in December, Talanx International and Meiji Yasuda Life Insurance Company jointly bought a majority stake in another Polish insurer, TU Europa, from a financial group Getin Holding for PLN 911.9 million.

With the purchase of Warta, which is Poland's second-largest insurer with an estimated consolidated market share of 8.1% the German insurer will now become the second-largest insurance group in Poland.
After closing the transaction, Talanx' Japanese partner Meiji Yasuda will take over 30% of the Warta shares from Talanx International AG, the firm said.

Talanx will continue working with Warsaw-based Warta’s existing management team, Talanx CEO Herbert Haas said.

"We look forward to working with the existing management team of Warta who we believe is doing an excellent job," he said. "We plan to invest further in the business, maintaining each of the subsidiaries and further improving the service and product offer to the clients."

Warta, Poland’s second-largest insurer after state-controlled PZU SA, has 1.5 million clients and premiums of 3.6 billion zloty in the first nine months of last year.

Poland accounts for 40 percent of insurance premiums in the central and eastern European region.