RIGA - Norway's largest non-life insurance company, Gjensidige Forsikring, which holds 31.8 percent of the market, has become the sole owner of Latvia's Parex Insurance Company (Parex AK). Gjensidige Forsikring purchased the company for 23 million euros on Sept. 14.
"For the time being, the company will keep operating in Latvia under Parex's name as control provisions allow us to do so," said Parex AK board chairwoman Dace Brumziede.
According to Parex representatives, the Norwegian company has characterized the business environment in the Baltic states as highly attractive, and thought the deal advantageous due to expected market growth.
In the coming years, the new owner plans to boost its market share in all of the Baltic states. As Parex AK has already established operations in Latvia, Lithuania, and Estonia, the purchase should help them to do so.
Parex AK was founded in 1994. Before selling to the Norwegians, the company was the third largest provider of non-life insurance in Latvia with 10 percent of the market.
The deal began in March of this year, and was concluded after Gjensidige received the necessary authorization for the transaction.
With the conclusion of the deal Gjensidige becomes the first Norwegian insurance company to operate in the Baltic states.