The Italian insurance group ERGO Italia ("EI" or "The Company") announced today it has signed an agreement to acquire Old Mutual Wealth Italy ("OMWI"), a leading insurance company specialized in the unit-linked market. The consideration of the transaction is €278 Million.

ERGO Italia was acquired by Cinven, the European private equity firm, on 30 June 2016 and has since completed the appointment of a new management including Davide Croff as Chairman and Erik Stattin as CEO, announced the sale of ERGO Assicurazioni to the European insurer DARAG, specialized in the P/C portfolio management (subject to approval by IVASS, the Italian Insurance Supervisor) and now signed an agreement to acquire Old Mutual Wealth Italy.

ERGO Italia's objective is to be a major player in the consolidation of the Italian life insurance industry, through both organic growth and acquisitions.

Established in Italy in 1997, OMWI is the seventh largest unit-linked life insurer company in Italy, with GWP of €1.7bn and AUM of €6.9bn, which have grown at a 16% compound annual growth rate (CAGR) over the last 4 years. The business provides its clients with access to over 1,200 mutual funds from over 100 assets managers distributed via a network of financial advisors.

The transaction will generate significant financial, commercial and operational synergies, while diversifying ERGO Italia's product portfolio - by entering the attractive unit linked market in Italy - and its distribution network - by adding OMWI's financial adviser partners and bancassurance channels to EI's widespread agency network and direct channels. Moreover, the transaction will create cross selling opportunities.

Erik Stattin, CEO of ERGO Italia, commented: "We are pleased to announce the acquisition of Old Mutual Wealth Italy. This transaction is the result of a clear vision, whose goal is to create a leading player through consolidation in the Italian life insurance market. We look forward to building on OMWI's capabilities to enhance our distribution network and our product line, gaining accessing to a high-growth market."

Caspar Berendsen, a Partner at Cinven commented: "Cinven has a strong track record of successfully growing European insurance businesses. We intend to do this with ERGO Italia through acquiring scale and providing differentiated products and distribution channels. Both ERGO Italia and OMWI will continue to benefit from the experience and insight Cinven has gained in the European insurance industry"

Eugenio Preve, Senior Principal at Cinven said: "We are excited about this acquisition, as it is another clear sign of Cinven's focus on the Italian market and a milestone of the growth strategy it has designed for ERGO Italia, which is to become a leader in the Italian insurance market".

Paul Feeney, CEO of Old Mutual Wealth, comments:  "Old Mutual Wealth Italy is a strong, successful and profitable business that has made a significant contribution to Old Mutual Wealth in recent years.  I am extremely proud of the Italian business and what they have achieved. I firmly believe that the growth prospects of Old Mutual Wealth Italy will be enhanced under Cinven and ERGO Italia's ownership."

Completion of the ERGO Italia transaction is subject to approval from IVASS, the authority responsible for regulating the Italian insurance market, as is customary.