AFTER TAKING THE COMMITMENTS, THE GERMAN COMPANY WILL BE ABLE TO CARRY OUT THE TRANSACTION IN THE INSURANCE MARKET

The Competition Council has approved the merger of Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München (MRGAM) indirectly through ERGO International AG acquiring 100% of the shares of the insurance company Gjensidige and taking sole control of it. The transaction was approved after the German company committed to sell Gjensidige's carrier liability insurance portfolio to a buyer approved by the Competition Council and to refrain from competing for the customers transferred for a specified period.

After assessing the notification of merger received on April 22, 2025, the Merger Control Group found that MRGAM's indirect acquisition of the insurance company Gjensidige through ERGO would create or strengthen a dominant position or significantly restrict competition in the low-premium segment of the carrier liability insurance market in Lithuania. In order to avoid the negative consequences for competition identified by the Authority, the German company submitted revised commitments to the Competition Council on December 10.

The German company committed that all existing Gjensidige carrier liability insurance contracts would be transferred to a purchaser unrelated to the parties to the transaction. Among other things, MRGAM will be required to maintain the value and scope of the contracts unchanged until the transfer of the business, not to compete for the transferred customers for two years, to provide transitional services at the time agreed with the purchaser, and to regularly inform the Competition Council about the implementation of the commitments.

MRGAM proposed If P&C Insurance, an insurance company registered in Estonia, as a potential purchaser of Gjensidige's business. The Competition Council approved the proposed candidate and the purchase agreement as complying with the commitments undertaken by the company.

The Competition Council cleared the merger, concluding that the negative effects on competition identified by the Authority would be eliminated if the commitments made – the transfer of Gjensidige's carrier third-party liability insurance portfolio – were implemented properly and in a timely manner.

The decision may be appealed to the Regional Administrative Court within one month of its delivery or publication on the Competition Council's website.

A non-confidential version of the decision will be published on the Competition Council's website.