Ergo Insurance to set shop

Ergo Insurance Group, the second-largest primary insurer in Germany, is looking for a joint venture partner for foraying into life, property and casualty (P&C) insurance in India.

The group has conducted a comprehensive market evaluation to assess the feasibility of setting up insurance operations in India in 2007.

It is expected to enter into advanced stages of talks with prospective Indian partners to discuss the structure of a potential co-operation within the next few weeks, in Ergo press release issued from Duesseldorf said.

The group has identified the attractive customer and product segments, the distribution channels to be established, and the preferred operating model. The Indian market, with a population of 1.1 billion and an increasing demand for insurance, offers highly attractive long-term growth potential.

"In our view the Indian market presents a significant opportunity for new entrants. Ergo's financial strength and insurance know-how, combined with strong market knowledge, reputation and pan-India presence through a local partner, will create value for all parties involved", said Klaus Flemming, board member in-charge of Ergo's international operations.

With total premiums of euro 16.7billion, the Ergo Insurance Group is a leading European insurer with 3 crore customers in 23 countries.