YEREVAN, February 4. /ARКА/. On January 30, the Central Bank of Armenia approved the acquisition of 100% of the shares of LIGA INSURANCE by the Austrian Grawe Group and C-Quadrat Investment Group.
Grawe Group owns 75% of the shares of Armenia’s LIGA Insurance, while C-Quadrat Investment Group owns the remaining 25%.
During a press conference held on Tuesday, it was noted that the deal opens the opportunity for qualitative progress in the insurance sector by establishing new benchmarks in corporate governance and risk management, as well as creating important preconditions for the introduction and development of life insurance in Armenia.
Positive Prospects
Central Bank of Armenia Chairman Martin Galstyan noted that this is the first such transaction in the Armenian insurance market. The current owners plan to introduce a new product – life insurance, previously unavailable in Armenia – and to develop agricultural insurance.
The Central Bank Chairman emphasized the importance of the entry of such reputable international companies for the development of the country’s economy and financial market.
He cited the following positive development prospects: the opportunity to diversify the product line, given Grawe’s extensive experience in life insurance; potential changes in the reinsurance system and the approaches of reputable international reinsurers; the possibility of implementing large-scale projects to assume insurance burdens; improved corporate governance.
“We talk a lot about the TRIPP project, the opening of intersections, transport and cargo transportation, and I think all of this will become much easier given the presence of a reputable international insurance company in Armenia,” Galstyan said. Yerevan as an opportunity for regional expansion
Grawe Group CEO and Chairman of the Board of Directors Klaus Scheitegel, speaking about the advantages of this deal for LIGA Insurance, noted that the focus will be on growth, offering specialized products to the insurance market, and the company’s entry into the international market.
Responding to a question from ARKA news agency, Scheitegel said that Grawe Group views Yerevan as an opportunity to create a hub for its representative office in the South Caucasus region.
“We chose Armenia because it has a long history, is safe, and has clear regulations and a high-level professional approach. We would like our experience to contribute to the development of the region,” he said.
The head of Grawe Group announced that the company’s immediate plans include focusing on the Armenian market.
Scheitegel also discussed plans for real estate investments and plans to expand into other segments, particularly agricultural insurance.
Business Cooperation
According to Andreas Wimmer, CEO and member of the board of directors of C-Quadrat Investment Group, the investment group, based on its successful experience in Armenia as a pension fund manager, saw real prospects for business development.
“Based on consultations with the Central Bank and market analysis, we realized that the insurance market has great potential. The insurance business, particularly life insurance, always goes hand in hand with asset management, and we decided that we could develop the market together with our partners, strengthening each other. This aligns with our strategic goals,” he said in response to a question from ARKA news agency.
Life Insurance as a Strategic Focus
Responding to ARKA’s question about the rebranding, Vahagn Agavelyan, Deputy Executive Director of LIGA Insurance, stated that the company’s name will be retained, with the addition of the inscription “Member of Grawe Group.” At the same time, significant changes will be made to the management team, including measures to improve employee qualifications.
According to him, the deal opens the company to access to a powerful database, new knowledge, and experience.
“We will introduce new insurance products, European insurance standards, and we will consider life insurance as a strategic development area for the coming years,” he emphasized.
In this regard, Steigel, in turn, emphasized that life insurance is directly linked to the financial literacy of the population.
“This is a journey that we must take step by step, educating our clients and explaining the essence of our products,” he explained.
Market Gaps
Speaking about existing gaps in the market, Agavelyan noted that, in addition to life insurance, which is strategically important in the context of building long-term funds, Armenia has a significant tactical gap in small and medium-sized business insurance.
“We have retail insurance, which insures individuals, as well as corporate insurance for large companies. This is an intermediate segment with many potential policyholders, and we intend to enter this niche. This is a rather complex segment from a client perspective, but we have specific projects in place, and we are preparing to enter this market,” he said.
Agavelyan explained that the difficulty lies both in the culture and knowledge, as well as in risk assessment. “But it is in this area that our experience is essential, so we can demonstrate the risks and offer insurance solutions,” he said.
